Singapore (23 September 2020) — Two days after its 31 August stock split was exercised, Apple (AAPL) started making its way down as depicted by the bearish Marubozu candle.
The decline broke the 50-day moving average before a potential reversal candle appeared Monday (21 September), with the stock managing to close at 110.08 just above the support 1 line of 102.80 level.
Source: https://www.tradingview.com/x/fZLiKa7s/
The bullish candle, could potentially signal a regain in the stock price above the 50-day moving average, however pressure at the moving average could resist the upward move. Only a break above the 50-day moving average could push the price higher before meeting the next resistance line at 123.77 level.
Cautious long position trades shall be taken with very defensive strategy.
But a break below the support 1 level may be equally strong too, as the general market is still under pressure. Should this continue this week, expect Apple to test the support 2 level at 94.99. Conservative investors and traders may have already exited their positions and be in cash until market shows signs of bullish reversal.-/-
Disclaimer: Mr Mukhriz Mangsor is a Certified Financial Technician and an independent trader who contributes to www.halaluniverse.net on a regular basis. He focuses his attention on the technology stocks listed on Nasdaq.The content of this article should not be considered as a recommendation to buy or sell a security. All information is intended for educational purposes only and not as an investment advice. You should seek a professional investment advice from licensed investment advisors.
