Significant variations in Appleās (AAPL) relative strength across a number of reports in recent months highlights the importance of the SIA Rank feature in SIA Charts, which averages a stockās ranking across several reports. For example, although Apple is still barely clinging to the Green Favored Zone in the SIA S&P 100 and SIA S&P 500 Index Reports, it has dropped into the Yellow Neutral Zone in the SIA NASDAQ 100 and SIA Russell 1000 Index Reports along with a number of technology sector reports giving it an overall SIA rank in the Yellow Neutral Zone.
Apple has been trending downward in the SIA NASDAQ 100 Index Report since July, and it is down 5.4% since exiting the green zone. Yesterday it finished in 47th position, down 7 spots in the last month. There is only one Computer Hardware company currently in the Green Favored Zone, Palo Alto Networks (PANW). Other notable Green Zone stocks with positive SMAX scores and bullish patterns include Nvidia* (NVDA) and Tesla Motors* (TSLA). An uptrend in Apple (AAPL) had looked promising when it broke out back in May over $175.00, but since faltering short of $200.00 back in July, accumulation has shifted to distribution. In recent weeks, a new downtrend of lower highs has emerged and the recent breakdown back under $175.00 has signaled a deepening downturn.
Previous highs and lows suggest potential downside support may emerge in the $150.00-$155.00 or $130.00-$135.00 zones. Initial rebound resistance appears in the $180.00-$185.00 area between a previous weekly high and a downtrend resistance line.
* Shares of Nvidia and Tesla Motors are held in portfolios managed by SIA Wealth Management.
Apple (AAPL) started the year off strong soaring from near $125.00 up toward $200.00 without even a 3-box correction along the way. Since peaking in August, however, the shares have come under distribution, setting a lower high in September and this month, staging a bearish Double Bottom breakdown which has signaled the start of a new downswing.
Next potential downside support appears near $153.25, a previous breakout point, followed by $130.85 based on a horizontal count. Initial resistance on a bounce appears near $190.60 based on a 3-box reversal.
With its bearish SMAX score of 5, AAPL is exhibiting weakness against the asset classes.
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