Apple Event Fails To Ignite Apple Stock

With CEO Tim Cook himself showing off the new products you might expect Apple AAPL investors to show some appreciation. The opposite occurred. As soon as the company’s top guy appeared with the goodies, the stock that had been heading up reversed and sellers took over from there.

The event took place last week and since that moment, you could buy Apple shares for cheaper and cheaper prices. Were investors unimpressed with the new stuff? Did they signal their disapproval by pressing the Robinhood sell button all at once? Hard to say, other factors are always involved, but the price is definitely lower than it was.

The hourly chart for Apple is quite revealing:

The red candlestick circled represents the price action on the time and day that the event took place. That’s a classic bearish engulfing candlestick: the stock takes out the previous highs and then reverses to close below the previous lows. All in the same hour.

You can see — below the price chart — how the selling increased. That’s the big red volume bar that sticks out clearly on the 13th. Note that Apple continued downward and eventually filled the gap up from the morning of the 12th. Also note that on this hourly time frame, it’s now trending downward, below the Ichimoku cloud.

The Apple price chart on the daily time frame looks like this:

You can see how the high price on the day of the Apple event is far below the recent peak set in early September. It looks as if the stock might be about to fall below the up trending Ichimoku cloud which, if it happens, would not be a bullish technical indicator.

I’ve red-circled the late July gap up in price — that 95/100 level showed significant buying activity. It’s likely to be a support area should the stock continue to trend downward. None of this is guaranteed as unpredictable events can move entire markets in unexpected ways. That’s why the word “likely” is used.

The weekly chart for Apple looks like this:

I’ve red-circled the bearish engulfing candlestick. The price goes above the previous week’s high and then closes below it. On this longer-term time frame it’s likely to be of more significance than the one spotted on the hourly.

It’s been quite a run for Apple coming off of the March lows.

You can get a sense of just how far it’s run just by comparing the current price to the level of the Ichimoku cloud in October far below. Note the crossover of the moving average convergence/divergence indicator below the price chart.

Here’s the Apple monthly chart:

You can see why Wall Street analysts might be disinclined to recommend selling such a performer. This straight-up action from March to the present is extraordinary — not to mention the move from the 2008/2009 Great Recession lows.

I do not hold positions in these investments. No recommendations are made one way or the other.  If you're an investor, you'd want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.