Time to short AppleApple Stock Analysis - March 7, 2024
Closing Price: $169.00
Daily Chart Insights:
The daily chart reveals that Apple’s stock price is nearing the dynamic support line. At $169.00, it’s hovering close to this critical level.
However, there’s a cautionary signal: the appearance of a yellow cross, indicating strong downward momentum. This suggests that Apple might decline significantly, potentially going below $166.55 before any meaningful pullback.
If the price indeed falls below $166.55 and the yellow cross persists, the previously supportive level could now act as resistance, potentially driving the price even lower.
Weekly Chart Observations:
On the weekly chart, Apple still has room to fall. The downtrend appears to be intact.
Selling volume remains high, indicating sustained bearish sentiment.
Potential for Further Decline:
Considering recent news and technical signals, there’s a possibility that Apple’s stock could drop all the way down to $152. Here are some factors supporting this claim:
Barclays Analyst Downgrade:
Barclays analysts recently cut their rating for Apple due to concerns about weak iPhone sales. This downgrade has raised questions about whether Apple’s shares can sustain their record surge. As a result, the stock dipped by 3%.
Slippery Start in 2024:
At the beginning of the year, Apple faced a slippery start. It was downgraded to “underweight” by Barclays, with an adjusted price target of $160—a 17% decline from the previous closing price of $192.53.
Supply Chain Concerns:
Investors were spooked by new supply chain concerns. A key supplier suspended some of its manufacturing operations in China, leading to a 2.7% drop in Apple’s stock price.
Ming-Chi Kuo’s Report:
Analyst Ming-Chi Kuo released a report indicating that iPhone shipments could decline by as much as 15% year over year. This news further adds to the bearish sentiment surrounding Apple’s stock.
Given these factors, it’s plausible that Apple’s stock could indeed fall below the current levels.
