"If you look at our results, our shortfall is over 100 percent from iPhone and it's primarily in greater China," Apple CEO Tim Cook told CNBC's Josh Lipton in an interview Wednesday. "It's clear that the economy began to slow there in the second half and I believe the trade tensions between the United States and China put additional pressure on their economy." Apple said it sees first-quarter revenue of $84 billion vs. a previous guidance of a range of $89 billion and $93 billion. Analysts expected revenue of $91.3 billion for the period."
Looking at the chart, we can see that Apple has been in a state of absolute freefall since it broke down from a pattern in October. The stock has fallen an incredible 39% from the all time high, in a matter of a few short months. Today, we can see that price has gaped down and opened the session below the 50% retrace. There is a bit of support through here, generated by lows from April of 2017. However, if AAPL begins to break down below that lateral support, around 140.06, we could see another rapid selloff in the tech giant's stock. A close below the 140 level would put the next target on the rising red support. That would be somewhere in the low 120s, depending on how long it takes AAPL to get down there.
As I write this, I can see that AAPL is attempting to turn to the upside. So, if price can get above the December low of 146.59, we may see a sharp rally to fill today's gap. That, however, is entirely dependent on AAPL's ability to surpass 146.59. If that doesn't happen, I would be on the lookout for a close below 140, which would signal a deeper breakdown, with a test of the rising red support, somewhere in the low 120s.
On the , we can see that APPL's sell-side momentum is at historically high levels. Since November, the has been trading at these extreme lows, showing that the sellers have been absolutely annihilating this stock. Naturally, we should expect a reversion to the mean at some point. However, that reversion may not occur until AAPL makes contact with the rising red support, since it is the most critical nearby . With that said, there is also a chance that we could see a gap fill attempt, it price closes above the 146.59 level, as mentioned above. So, that too could cause a sharp relief rally, coupled with a rapid rise in momentum.
Looking closer at the , we can see that it has printed a small , as price has made extreme advancements to the downside, while the has printed a higher low (green .)
Ultimately, a close below 140 will put the rising red in play, while a close above 146.59 will put an upside gap fill in play.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***