Technical Update - Apple uptrend seems to come to an end. Amazon breaking range, eyeing higher levels Technical Update - Apple uptrend seems to come to an end. Amazon breaking range, eyeing higher levels Technical Update - Apple uptrend seems to come to an end. Amazon breaking range, eyeing higher levels

Technical Update - Apple uptrend seems to come to an end. Amazon breaking range, eyeing higher levels

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Apple strong uptrend could have come to an end. Weakening trend and top and reversal indicators are pointing to lower levels.
Amazon is set to open higher breaking range bound picture. Uptrend seems to resume but strong overhead resistance


Apple is indicated to open lower following Earnings release After-Hours yesterday. The opening price is indicated by horizontal dashed blue line around 187.
That means Apple will open around minor support at around 187.90.

Apple is already below lower rising trendline and a close below 187.90 will confirm a downtrend.

RSI has been showing divergence for a couple of weeks now which is an indication of trend weakening and likely reversal.
If closing below move to 180-175 could be seen. The 55 daily Moving Average will offer some support.

The weekly chart is drawing a more worrying picture; Two top and reversal although one still in the making.

A shooting star that has not been cancelled and a bearish Engulfing in the making. The Bearish Engulfing candle will only be demolished if Apple can close above 193.41 today.

Adding to that the RSI is showing divergence and traded volume has been declining for the past 10 months, both a clear sign of a weakening of the uptrend.

A close above 198.25 is needed to demolish the top and reversal picture and extend the uptrend.

Source all charts and data: Saxo Group

Amazon is indicated to open 8-9% higher around 140 after Earnings release as indicated on the daily chart with the dashed blue line.

If amazon does not collapse during the trading session the RSI will close back above 60 and could cancel the divergence it has been showing for a few weeks now.
If that scenario plays out there is more upside potential for Amazon in the coming weeks.

If closing above 136 Amazon would have broken the deadlock it’s been in for the past couple of weeks.
Resistance at around 144. A close above will point to higher levels. Possibly 165-167

If Amazon closes below 135 the opening gap that is set to be created today will be closed. If that occurs it is likely to jeopardize the Bullish scenario. Closing below 126 will destroy  and reverse it the bullish picture

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank (Schweiz) AG
The Circle 38
CH-8058
Zürich-Flughafen
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) Ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law. 

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.