Big-cap tech is turning down, but Apple stock is holding up. Can it continue to buck the trend or will it succumb to the lower prices as well?
We see stocks falling left and right as US equity indices come under renewed selling pressure. However, apple (AAPL) – Get Apple Inc. report holds up very well.
The latest pain began last week with the hotter-than-expected inflation report, leading to the S&P 500’s worst single-day trading session in two years.
While markets tried to hold their ground amid recent selling pressure, they fell on Wednesday after the Fed’s decision to raise interest rates and plans to raise interest rates further through year-end.
At one point this year, Alphabet (Google) – Get report from Alphabet Inc (WELL) – Get report from Alphabet IncMicrosoft (MSFT) – Get the Microsoft Corporation Report and Apple were the crème de la crème for mega-cap technology.
But as we now see, Alphabet is no longer on this list as it hits new lows. Neither does Microsoft, but Apple is holding up relatively well.
Trading Apple shares
Of course, Apple stock isn’t that only stock that holds up, but from the big tech names – apart maybe from Tesla (TSLA) – Get Tesla Inc. report – it lasts best.
Apple stock had a very impressive march off the 2022 low, rising 36.5%. A segment of this rally included a gain in seven out of eight weeks.
It was enough to temporarily start the stock above the downtrend resistance (blue line), but the bears eventually caught up.
Now below all of its daily moving averages, Apple is resting above the critical $148-$150 zone. This was a key fulcrum of support and resistance. Here we also find the 21-month moving average.
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This area was solid support last week, but notice how Apple stock continues to hold above last week’s low – something the market and many other stocks are Not do.
If Apple shares lose $147, the 61.8% retracement, it will open the door down to the $140 area. In this zone we find the monthly VWAP measure and the 78.6% retracement.
Below that, the 2022 lows near $130 come into play, with the next significant area not coming into play until the $118-$120 zone.
On the upside, rallies into the $157.50-$160 zone have been sold for the past three weeks. That needs to change for bulls to enjoy a sustained upward push.