This is not the right acclimation point for Apple stock price, wait a moment

  • Apple’s stock price has fallen more than 20% from its 90-day high.
  • The price rally has trapped buyers near $150 this week.
  • Yesterday’s lower open led to a selloff in Apple stock prices.

Apple stock price is under extreme selling pressure. In 2022, investors made three times their profits and saw a sharp decline. Buyers assumed the downtrend was temporary, but now prices are showing no significant signs of volatility due to strong profit booking.

The Fear and Greed Index shows extreme fear for the S&P 500. Last night, the US stock index fell 2.76%, dragging the prices of the largest US stocks lower. However, the global market is suffering from weak market sentiment. The impact of this can be seen in Apple’s stock price, which has already lost more than 20% of its cost from its 90-day high.

According to the trading view chart, Apple stock price has underperformed since its August high of $176.15. Later, the price of the asset sells on every rise, which shows the existence of the sell-up strategy in the market. The bears found a selling point near the downtrend line (above the chart), indicating a further decline in price to the key support level of $130.

As of this writing, Apple stock price remains at $140 with an intraday decline of 3.67%. Now, speculators have established a trading range between $147 and $136 resistance at support. After seeing the bearish sentiment in the market, buyers may attempt to reverse Apple stock price near the next level of $130. This level will be the bulls’ last hope to reverse the downtrend.

There is no doubt that the downtrend was seen during the second price pullback near the new 52-week high of $182.94 on January 4, 2022. Eventually, trading volume spiked over the weekend and recorded at $94.9 million.

The RSI indicator is ready to dip into the heavily oversold area that has been tested once in the past 10 days. This negative sign indicates an overbought Apple stock price. Furthermore, the MACD is approaching a 45-day low with a strong bearish histogram.

Conclusion

Weak market sentiment will likely cause Apple’s stock price to decline slightly towards the key $130 support level. This profit booking could turn into a bloodbath if buyers fail to hold Apple stock price above the upcoming support.

Resistance level – $150 and $175

Support level – $130 and $100

Disclaimer

The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only, and they do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.

Nancy J. Allen
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