Home Stock Apple declined 2.12% to close at $161 but how much further can it drop?

Apple declined 2.12% to close at $161 but how much further can it drop?

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Apple Inc. (NASDAQ:AAPL) shed 2.12% this week, closing at $161.79. This is the third consecutive week of losses for the company. The 10-day moving average continued to trade below the 20-day. Investors now ask whether bears are finally winning over the bulls.

Apple’s decline is not an isolated case. This week nearly 90% of equities closed lower. The DJI closed 1.86% lower this week after losing nearly 1% the previous one. The index has lost gradually but consistently over the last four weeks.

Investors make money when the market is rising and when it is falling. As Apple’s share price declines, investors are likely to find the prices significantly discounted. This creates an opportunity to average down and accumulate. This is especially important for Apple which is a highly attractive stock in any market situation.

There are a number of reasons why Apple is still attractive. The company’s flagship product, the iPhone, continues to rule the market. Apple has also made a cash cow out of services such as Apple Music and Apple Pay. Most importantly, the company leads in the wearables market with its Apple Watch and AirPods. Consequently, Apple is set to continue providing stellar growth for its investors.

Apple declines for 3 weeks as the 10-day average sinks

Source – TradingView

Analysis of the share price performance reveals several important facts. The bullish trend has decelerated. The company appears to depart from its pattern, given the lower high of $174 recorded four weeks ago. Previously, Apple had traded at a high of $184 before pulling back.

The other fact is that the 10-day moving average has been below the 20-day average for six weeks. This week, the 10-day average turned down further, pointing to bears taking control. However, the stock is likely to find support at the 50-day average which is currently at $154.

Summary

Apple has been on a gradual but consistent decline for the third consecutive week. The price will find support at the 50-day average currently at $154. Apple is a buy.

The post Apple declined 2.12% to close at $161 but how much further can it drop? appeared first on Invezz.

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