SIACharts Logo

Commentary >

Apple Inc. - (AAPL) - October 5, 2023

Significant variations in Apple’s (AAPL) relative strength across a number of reports in recent months highlights the importance of the SIA Rank feature in SIA Charts, which averages a stock’s ranking across several reports. For example, although Apple is still barely clinging to the Green Favored Zone in the SIA S&P 100 and SIA S&P 500 Index Reports, it has dropped into the Yellow Neutral Zone in the SIA NASDAQ 100 and SIA Russell 1000 Index Reports along with a number of technology sector reports giving it an overall SIA rank in the Yellow Neutral Zone.

Apple has been trending downward in the SIA NASDAQ 100 Index Report since July, and it is down 5.4% since exiting the green zone. Yesterday it finished in 47th position, down 7 spots in the last month. There is only one Computer Hardware company currently in the Green Favored Zone, Palo Alto Networks (PANW). Other notable Green Zone stocks with positive SMAX scores and bullish patterns include Nvidia* (NVDA) and Tesla Motors* (TSLA). An uptrend in Apple (AAPL) had looked promising when it broke out back in May over $175.00, but since faltering short of $200.00 back in July, accumulation has shifted to distribution. In recent weeks, a new downtrend of lower highs has emerged and the recent breakdown back under $175.00 has signaled a deepening downturn.

Previous highs and lows suggest potential downside support may emerge in the $150.00-$155.00 or $130.00-$135.00 zones. Initial rebound resistance appears in the $180.00-$185.00 area between a previous weekly high and a downtrend resistance line.

* Shares of Nvidia and Tesla Motors are held in portfolios managed by SIA Wealth Management.

Apple (AAPL) started the year off strong soaring from near $125.00 up toward $200.00 without even a 3-box correction along the way. Since peaking in August, however, the shares have come under distribution, setting a lower high in September and this month, staging a bearish Double Bottom breakdown which has signaled the start of a new downswing.

Next potential downside support appears near $153.25, a previous breakout point, followed by $130.85 based on a horizontal count. Initial resistance on a bounce appears near $190.60 based on a 3-box reversal.

With its bearish SMAX score of 5, AAPL is exhibiting weakness against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.