Big cap tech is turning lower, but Apple stock is holding strong. Can it continue to buck the trend or will it too succumb to lower prices?
While markets tried to hold up amid the recent selling pressure, they broke lower on Wednesday following the Fed’s decision to raise interest rates and plans to continue increasing rates into year-end.
At one point this year, Alphabet (GOOGL) – Get Alphabet Inc. Report (GOOG) – Get Alphabet Inc. Report, Microsoft (MSFT) – Get Microsoft Corporation Report and Apple were the cream of the crop for mega-cap tech.
Trading Apple Stock
Daily chart of Apple stock.
Chart courtesy of TrendSpider.com
Apple stock had a very impressive march off the 2022 low, climbing 36.5%. One stretch of that rally included a gain in seven out of eight weeks.
It was enough to momentarily launch the stock above downtrend resistance (blue line), but the bears eventually caught up with it.
Now below all of its daily moving averages, Apple rests above the critical $148 to $150 zone. That has been a key pivot area of support and resistance. It’s also where we find the 21-month moving average.
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This area was solid support last week, but notice how Apple stock continues to hold above last week’s low — something the market and many other stocks are not doing.
If Apple stock loses $147 and thus the 61.8% retracement, it opens the door down to the $140 area. In this zone, we find the monthly VWAP measure and the 78.6% retracement.
Below that puts the 2022 lows in play near $130, with the next significant area not coming into play until the $118 to $120 zone.
On the upside, rallies into the $157.50 to $160 zone have been getting sold for the last three weeks. That needs to change for bulls to enjoy a sustainable upside push.