“One bearish chart for Apple Inc.’s stock doesn’t a bear market make… but how about four scary-looking charts?” Tomi Kilgore reports for MarketWatch.
“First is an impending bearish ‘death cross’ pattern, in which the 50-day moving average crosses below the 200-day moving average. This pattern is seen by many as marking the spot that a shorter-term decline graduates into a longer-term downtrend,” Kilgore reports. “While the validity of the ‘death cross’ has been widely debated, the last time one appeared, just as the stock was pulling back from record highs, the stock fell another 27% in four months.”
“Based on the current trajectories of Apple’s 50-day and 200-day moving averages, a ‘death cross’ should be confirmed in a little over a week, or at least by the end of the mont,” Kilgore reports. “Adam Sarhan, CEO of financial advisory firm Sarhan Capital, said he turned bearish on Apple’s stock earlier this month, after being bullish for about 1 1/2 years, because it broke below key support, including the 200-day moving average. ‘When you see a major break in a stock like Apple, that means the big institutions are selling, not buying the stock,’ Sarhan said in a phone interview with MarketWatch. ‘We saw this in 2012.'”
More AAPL chart soothsaying here.
MacDailyNews Take: Heartening.
[Thanks to MacDailyNews Reader “eldernorm” for the heads up.]