Shares of Apple ( AAPL) have corrected lower since the start of 2022 but they have held up better than the market averages so far. Let's check closer to see if this superior relative performance can continue or if some of the buy-and-hold crowd loses their confidence.
In the daily bar chart of AAPL, below, we can see that the shares dipped towards the rising 200-day moving average line in late February. Trading volume did increase in late February but I do not see it as a high enough level of volume to tell me that investors used that dip to increase their holdings.
The daily On-Balance-Volume (OBV) line has been in a decline since the end of November, suggesting that sellers of AAPL have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but making a cover shorts buy signal.
In this weekly Japanese candlestick chart of AAPL, below, we can see a number of upper shadows over the past three months. The lower shadow of the doji in February stands out but we are not seeing much follow-through buying just yet. The rising 40-week moving average line is rising and was tested.
The weekly OBV line shows only a slight decline in February. The MACD oscillator has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of AAPL, below, we can see a potential downside price target in the $135 area.
In this second Point and Figure chart of AAPL, below, we used weekly close-only price data. Here we can see that prices reached a longer-term price target in the $171 area.
Bottom-line strategy: Traders should pay closer attention to AAPL as it approaches the underside of the declining 50-day moving average line in the $170 area. A rally failure would not be a positive technical development.
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The technical signals aren't yielding a clear answer to that question.
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