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 week’s 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 US–China trade tensions could have a deeper impact on Apple going forward.
Bearish sentiment may also have been amplified by Warren Buffett’s decision to step down as head of Berkshire Hathaway — as we noted yesterday — since his company is one of Apple’s 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.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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 week’s 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 US–China trade tensions could have a deeper impact on Apple going forward.
Bearish sentiment may also have been amplified by Warren Buffett’s decision to step down as head of Berkshire Hathaway — as we noted yesterday — since his company is one of Apple’s 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.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.