Not long after Apple (NASDAQ: AAPL) missed the estimates for its iPhone sales partially due to weakness in its Chinese market, the technology behemoth’s stock price is demonstrating some concerning chart patterns that could indicate a possible price decline in the near future.
Specifically, Apple stock seems to be printing a head and shoulders pattern as it continues to test the 200-day moving average (MA), according to the recent chart data observations shared by stock market analytics platform Barchart in X post shared on February 16.
As it happens, the said technical analysis (TA) pattern typically suggests stock prices that have been increasing over time during a bullish stage are about to flip the trend, and prices might start going down again, initiating a bearish phase or downward direction.
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In other words, Apple stock demonstrating a head and shoulders pattern on its price chart suggests that it might enter bearish mode soon and reverse the upward movements it had made starting in November last year and continuing throughout December, interrupted by a brief decline in January.
Apple stock price analysis
Meanwhile, the price of Apple at press time stood at $183.86, recording a decline of 0.16% on the day but an increase of 0.46% in pre-market, whereas on its weekly chart, it declined by 2.64%, still recording a very modest gain of 0.13% in the last 30 days, as per the latest data.
In addition to a poor price outlook, APPL is currently trading near the lows of its last month’s range between $179.25 and $196.38. However, it is also trading in the upper part of its 52-week range, albeit slightly lagging behind the S&P 500 Index, which is nearing a new high.
By comparison to other assets in the stock market, Apple has outperformed 66% of them in its yearly performance, as well as doing better than the 51% of the other 32 stocks in the technology hardware, storage, and peripherals industry, while demonstrating liquidity of over 56 million traded shares per day.
All things considered, Apple stock’s price might, indeed, take a turn for the worse soon, but this could present a great opportunity to ‘buy the dip’ for those who have been eyeing the stock when it traded higher. That said, it is important to do detailed research before investing in any asset.
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