Apple held up better than many large technology stocks last week, but traders may still see downside risk in the smartphone giant.
The first pattern on today’s chart is a potential falling channel since December 26. Continuation of that trend may point toward new lows under $210.
Second, AAPL bottomed at $219.71 in the fourth quarter. The previous quarter’s low was $196. Given weakness in the broader market, could dip-buyers wait for tests of those longer-term levels?
Third, the stock appears to be stalling at its 50- and 100-day simple moving averages. That may reflect a weakening long-term trend.
Next, MACD is falling. The 8-day exponential moving average (EMA) is also at risk of slipping below the 21-day EMA. Those points may reflect weakness in the shorter term.
Finally, AAPL is one of the most active underliers in the options market. (It’s averaged more than 900,000 contracts per day in the last month, according to TradeStation data.) That could make some traders look to position for moves with calls and puts.
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Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See https://www.TradeStation.com/DisclosureOptions. Visit https://www.TradeStation.com/Pricing for full details on the costs and fees associated with options.
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TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
The first pattern on today’s chart is a potential falling channel since December 26. Continuation of that trend may point toward new lows under $210.
Second, AAPL bottomed at $219.71 in the fourth quarter. The previous quarter’s low was $196. Given weakness in the broader market, could dip-buyers wait for tests of those longer-term levels?
Third, the stock appears to be stalling at its 50- and 100-day simple moving averages. That may reflect a weakening long-term trend.
Next, MACD is falling. The 8-day exponential moving average (EMA) is also at risk of slipping below the 21-day EMA. Those points may reflect weakness in the shorter term.
Finally, AAPL is one of the most active underliers in the options market. (It’s averaged more than 900,000 contracts per day in the last month, according to TradeStation data.) That could make some traders look to position for moves with calls and puts.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See https://www.TradeStation.com/DisclosureOptions. Visit https://www.TradeStation.com/Pricing for full details on the costs and fees associated with options.
Margin trading involves risks, and it is important that you fully understand those risks before trading on margin. The Margin Disclosure Statement outlines many of those risks, including that you can lose more funds than you deposit in your margin account; your brokerage firm can force the sale of securities in your account; your brokerage firm can sell your securities without contacting you; and you are not entitled to an extension of time on a margin call. Review the Margin Disclosure Statement at https://www.TradeStation.com/DisclosureMargin.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.