Chart of the week – Apple
“Death Cross” at Apple before WWDC 2022
Medium term technical analysis (1 to 3 months)
Time stamped: June 5, 2022 at 12:00 SGT (click to enlarge chart)
Source: CMC Markets
- Apple Inc. will hold its annual 2022 World Developers Conference next week from Monday (June 6) to Friday (June 10). New updates for iOS / iPad OS, macOS and watchOS are likely to be announced. The focus of market participants is whether there will be a launch of mixed-reality development tools for their combined AR / VR (augmented reality / virtual reality) portable headphones, a key future revenue stream for Apple.
- From a technical analysis perspective, Apple’s recent price action (AAPL) does not look promising to defend a bullish view that we have reached a major fundraising process on May 20, 2022 that will start a new sequence. of impulsive movements for a new set. high time.
- The bearish bias below 152.50, the key resistance in the medium term for another possible sequence of impulsive downward movements within its main phase of the downward trend existing from the maximum of January 4, 2022 to re-testing the recent May 20 low of 132.62 and a break below may see another potential drop. towards the key support area of 126.00 / 118.45.
- On the other hand, a settlement with a daily close above 152.50 invalidates the bearish scenario for an extension of the corrective rebound from the low of May 20, 2022 to the next resistance at 171.50 (also a decline of 76.4% of the downward movement from the maximum of January 4, 2022 to the maximum of May 20, 2022 low).
- According to Elliot’s Wave / Fractal analysis, the key support area 126.00 / 118.45 can see the end / end point of the first stage of the important downward trend phase of several months (wave A ) from the January 4, 2022 high .
- bass elements; the recent rise of 14.4% from the low of May 20, 2022 to the high of June 1, 2022 has been accompanied by a lower / decreasing volume, the first sighting of a signal of “cross death rate “(50-day moving average below 200-day moving average) has led to a bearish reaction just after further evidence of its key strength at the 51% level, suggesting that the downward momentum of price action in the medium term remains intact.