Apple Shares (AAPL) Drop Below $200
Late last week, Apple released a quarterly report that beat analysts expectations:
Earnings per share: actual = $1.65, forecast = $1.63
Revenue: actual = $95.36bn, forecast = $94.5bn
However, today AAPL stock price is below the psychological $200 mark, over 7% lower than last weeks high (point E).
Why did AAPL shares fall?
According to media reports, investors were concerned about weaker-than-expected services revenue and disappointing sales in China. These factors have renewed fears that the ongoing USChina trade tensions could have a deeper impact on Apple going forward.
Bearish sentiment may also have been amplified by Warren Buffetts decision to step down as head of Berkshire Hathaway as we noted yesterday since his company is one of Apples major shareholders.
Technical Analysis of Apple Shares (AAPL)
Key AAPL price action patterns (marked) show a sequence of lower highs and lows, forming the basis for a downward channel. Fibonacci ratios reinforce bearish characteristics in price movements:
The rise from B to C is approximately 50% of the decline from A to B
The rise from D to E is around 50% of the decline from A to D
This technical picture suggests a potential bear market, where rallies may be corrective rebounds following impulsive drops. This strengthens the scenario in which AAPL shares could continue falling within the established descending channel.
Read more: https://fxopen.com/blog/en/oa-apple-shares-aapl-drop-below-200/
Text source: Forex Trading Blog
