Apple Might Be StuckThe broader market has rebounded sharply in the last month, but Apple might be getting left behind.
The first pattern on today’s chart is the April 15 peak of $212.94. The smartphone giant probed that level in early May and again last week without breaking it. (The more recent high was also slightly lower.) That may suggest resistance is in place.
Second, the Nasdaq-100 and S&P 500 are back to levels from late February and early March. AAPL’s smaller bounce compared with the broader market may reflect weaker relative strength.
Third, the stock is below its 200-day simple day moving average (SMA). That also contrasts with the bigger indexes, which are above their respective 200-day SMAs.
Fourth, the 50-day SMA had a “death cross” below the 200-day SMA in early April and has remained there since.
Next, stochastics are dipping from an overbought condition.
Finally, AAPL is one of the most active underliers in the options market. (Its average volume of 1.1 million contracts ranks third in the S&P 500, according to TradeStation data.) That could help traders take positions with calls and puts.
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