Apple’s stock has fallen far enough and for long enough to produce the ominous-sounding “death cross” bearish chart pattern that AAPL last marked in December 2018.
The stock has fallen far enough and for long enough to put its 50-day moving average (DMA), which many chart watchers view as a short-term trend tracker, on track to cross below its 200-day moving average (DMA), which is viewed as a dividing line between longer-term uptrends and downtrends, as early as Friday.
That crossover, which is referred to as a “death cross,” is seen by some technicians as marking the spot that a shorter-term selloff graduates to a longer-term downtrend.
Apple’s 50-DMA fell to $159.573 on Thursday from $159.939 on Wednesday, according to FactSet data, and has declined by an average of 30 cents over the past 20 sessions, while the 200-DMA inched up to $159.489 from $159.487. At that pace of DMA changes, the death cross should appear on Friday…
Apple’s last death cross appeared on Dec. 20, 2018, after the stock had tumbled 32.4% from a then-record $58.02 on Oct. 3, 2018. The stock fell another 9.3% before bottoming on Jan. 3, 2019 at a 21-month low of $35.55, which was 38.7% below its record.
MacDailyNews Take: Whatever spooks the weakhearted enough to sell low is fine with us, (with those managing Apple’s buybacks, and, very likely, Warren Buffett).
It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price. – Warren Buffett
MacDailyNews Note: Apple’s all-time high was set on January 4, 2022 at $182.94.
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