Shares of Apple (AAPL) are trading lower Wednesday perhaps in reaction to reports that China has ordered its government agencies to stop using iPhones at work. I don't know how this U.S. vs. China "tit for tat" diplomacy will play out so let's check the charts and indicators.
In the daily Japanese candlestick chart of AAPL, below, I can see some reasons to be concerned. Prices have rallied back to fill part of a downside price gap from early August but not all of the gap. I consider this a sign of weakness as sellers of AAPL stepped in to liquidate shares before reaching what I would consider chart resistance -- the top end of the price gap.
Notice the doji pattern the other day? And then the small real body on Tuesday? A bearish or red candle today (Wednesday) could be considered a top reversal. Prices are above the 50-day moving average line but that may not last long. The slope of the 200-day moving average line is positive.
The On-Balance-Volume (OBV) line has moved up from mid-August to its prior high at the beginning of August so it could be a double top. The Moving Average Convergence Divergence (MACD) oscillator has improved to the underside of the zero line -- a convenient place for it to stall.



