Apple Inc. (AAPL) is approaching a very important trend line.
We pointed out this intersection at the beginning of the month, noting that "I know there is keen interest in the latest numbers from AAPL, but let's consider what the four charts are saying. Apple could experience some weakness, but it only may be back down to the long-term uptrend. Investors should think about what a weekly close below $195 would do. No action is necessary, but keep it in mind."
With the price of AAPL down sharply and approaching the long-term uptrend Monday morning, another look at AAPL is warranted.
In the weekly log chart of AAPL, below, we can project that prices are testing the rising 40-week moving average line. We can see that the weekly On-Balance-Volume (OBV) line shows a sharp decline - the biggest decline I think of the past three years.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal or a sell in an uptrend.
In this daily bar chart on a log scale from Bloomberg, below, we have added in the key uptrend line that goes back to 2016. A test and potential break of this trendline could occur Monday or this week.
Bottom-line strategy: Sir Isaac Newton missed being an investor in Apple by over 300 years but gravity and selling by investors is pulling AAPL lower for a test and possible break of a key trend line. Do not ignore the message.