The Breakdown in Apple Stock May Signal a Market Bottom
A chart analysis shows that Apple stock has broken out of a small ascending triangle pattern. In addition, it is trading below its 50-day and 200-day moving averages. If this trend continues, the stock may be headed for a further decline.
AAPL breakout of small ascending triangle pattern
AAPL stock has been forming a small ascending triangle pattern and a breakout will signal a possible market bottom. However, a break below this support level could lead to a correction. The stock has been finding support near its 50-day moving average (MA) and could rise from there. In addition, the stock may be forming a cup and handle pattern in its daily chart.
In trading, it is important to understand how to read an ascending triangle pattern. It is a chart pattern that can form at any time. The triangle pattern consists of two highs and one reaction low sandwiched between them. The highs and lows need not be exactly the same, but they should be close in price. It is also important to note that the lows and highs must both be above the last low.
In addition to the breakout of the small ascending triangle pattern, the larger trend is still up. This means that AAPL is likely to hit new highs before year’s end.
AAPL trades below its 50 day moving average
The breakdown in Apple stock could be a good sign that the market is about to bottom. The stock has been falling because of rumors of weak Iphone X sales. It has broken through a downtrend line and may be forming an ascending triangle pattern. The price may then bounce higher. However, it must stay above its lower uptrend line and avoid breaking through its 200 MA, which would lead to a market correction.
The stock has fallen nearly 22% this year. It is now about 10% below its June trough. The S&P 500 has declined 24% this year. Apple has fallen nearly six percent in the past two days, which is a significant drop. On Wednesday, Apple fell nearly 1% after reports of production cuts. A day later, Bank of America downgraded the stock from buy to neutral. Analysts believe that Apple is about to hit a bottom.
AAPL trades below its 200 day moving average
According to the most popular technical analysis method, Apple’s recent decline may be a sign of an upcoming market bottom. Apple stock is part of the S&P 500 index and was close to breaking a record on Friday. Despite the market’s high volatility, the S&P 500 had only been down 32% in two days. If Apple stock had fallen more than 10%, that would have put enormous downward pressure on the entire market.
Apple is one of the world’s most popular stocks. It has a reputation for being cool and a symbol of prestige. The ability to hold an iPhone 7 Max in your hands is a symbol of coolness and wealth. However, the company has been through a lot since last year, when it made its high. The company’s stock began its decline by breaking below the daily box. The stock dropped from $200 plus to $170, but after a bullish cross, the price topped out around January 2019. Now, the stock is consolidating sideways and is forming a box.
