Apple shares started the week by dropping below $500 to mark an 11-month low. The stock declined on reports that the company went to suppliers and cut orders for iPhone parts in half on lower than expected demand.
Monday’s drop wasn’t too shocking, considering that the stock has shed -22% in the past three months…and considering that a long-term sell was signaled over one month ago.
And yesterday’s gain of over 4% looks to me like a bounce off of slightly oversold levels, not a reversal. That means that next week, there is going to be a lot of pressure when the company reports earnings to come out with something solid that could give the stock some much needed momentum. As for now, both primary and secondary indicators signal a sell.
And Wednesday’s gain of over 4% looks to me like a bounce off of slightly oversold levels, not a reversal. That means that next week, there is going to be a lot of pressure when the company reports earnings to come out with something solid that could give the stock some much needed momentum. As for now, both primary and secondary indicators signal a sell.