Currently Apple Inc. (NASDAQ: AAPL) has shifted direction and has touched the $545 price level leaving investors fearful of what to expect in the near future.

We now know the $590 price level was a critical area of resistance and has continued to be a strong resistance point.

Areas of support for AAPL can sometimes be difficult to reference, due to the large movements in price and the amount the company is weighted in the indexes.

The Death Cross

The death cross is when the 50 day moving average crosses the 200 day moving average. This can signal a huge shift in direction and in my eyes gives a warning flag that Apple’s momentum is not what it used to be. All the people who have enjoyed monster gains over the last few years buying calls will have to re-evaluate their strategy. Just to give everyone a reference, AAPL stock has not had a “death cross” since September of 2008!

The chart I posted indicates this cross. Note the 50 MA (The red line) coming close and pinching the 200 MA (the blue line). The big question on every investors mind is… will they cross and what will happen if they do?  Right now it’s not looking so good for AAPL bulls, but I can tell what… you can never count the AAPL bulls out, sometimes we get panic selling just before reversing for a new bullish swing up!

See how the AAPLTrader Community is trading AAPL stock right now at AAPLTrader.com

Where do we go from here?

Yes, global expansion has been successful for AAPL in creating more revenue. But, I think it’s time to take a step back and re-evaluate the forecast of their stock. Which has been heavily sold over the last few months.

Given today’s margin drama in AAPL, I would be cautious being long right now! At least until we see some sort of confirmation of a pivot back to the upside.

 

Trade On,

Micah

PS. If your emotions are getting the best of you during these volatile times, make sure you check out the Trader Psychology Articles from AAPLTrader.com.

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