AAPL breaks below key technical support level
Apple Inc. (AAPL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AAPL finished Wednesday at 112.13 losing $3.41 (-2.95%), significantly underperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 113.61, the market confirmed its breakout through the prior session low after trading up to $1.56 below it intraday.
Daily Candlestick Chart (AAPL as at Sep 16, 2020):
Wednesday's trading range has been $3.95 (3.43%), that's slightly below the last trading month's daily average range of $5.07. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AAPL.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 113.78 (now R1), which is likely to act as resistance going forward. The last time this happened on September 10th, AAPL lost -1.31% on the following trading day.
Although Apple is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 110.00 where further sell stops might get triggered. Further selling could move prices lower should the market test August's close-by low at 107.89.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Apple. Out of 519 times, AAPL closed higher 53.37% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.89% with an average market move of 1.34%.
With four out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are FB losing -3.27% and AMZN closing -2.47% lower. None of the markets managed to end the day in the green. Read more