“Apple Inc. has dropped below its 50-day moving average for the first time in nearly a month, suggesting the technical outlook has turned negative,” Tomi Kilgore writes for The Wall Street Journal.
“The stock was down $16.06, or 3.6% at $427.80, and has now lost 7.8% since closing at a three-month high just six sessions ago. The 50-day MA, which technicians use to gauge the intermediate-term trend, comes in today at $434.87,” Kilgore writes. “‘Closing below the 50-day MA is not a ‘magic bullet,’ but it would deem [the outlook] negative,’ said Stanley Dash, vice president, applied technical analysis at TradeStation Securities.”
Kilgore writes, “The key level to watch, Mr. Dash said, is the early-March and early-April lows around $419… If that level breaks, there isn’t much left on the charts until the April low of $385.10.”
Read more in the full article here.