Technical Analyst, Saxo Bank Group
Summary: Apple Investors didn’t like the new products launch and the stock price has indication of an exhaustion of the strong uptrend. A larger correction could be in the cards. End of week closing is likely to be key
Yesterday Apple opened higher and was lifted in the early part of the session. Then sellers took control for most of the trading session and the stock closed lower.
I guess the market was not happy with the new product launch.
Right at the open today sellers are still in control and are likely to be in control for the next few days sending the stock price to test lower rising trendline in the channel Apple has been trading for the past couple of months. Over the same time period RSI has been showing divergence i.e., the RSI values have been dropping while the stock price has been rising. That is a sign of a weakening trend.
However, the trend is still up and a close below support at around 170.76 is needed for that scenario to change.
If Apple indeed closes below 170.76 a sell-off down to around 160.25 is in the cards.
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