Singapore (28th February 2020) — Apple Inc., (NASDAQ: AAPL) was not spared the brunt and was one of the biggest losers in Thursday’s market rout, ravaged by the fears of the Coronavirus (COVID-19) pandemic. At the close of trading Thursday 27 Feb 2020, the Dow plunged over 1,200 points, while AAPL posted over 12.63% decline.
Chart Link: https://www.tradingview.com/x/mXgB2S1M
AAPL had started the week ugly as the stock gapped down to open below the (3) 10-week moving average line (50-days MA) at 297.26 and failed to post any bounce or recovery after AAPL reported disruption of its supply chain and warning of falling revenue target for the next quarter.
The next defence line for AAPL would be the 256.86 level (the 38.2% Fibo area) for a quick recovery. However, if this level fails to arrest the plunge, the next support level would be the 50-week moving average line coloured blue on the chart, with final defence line at the 212.99 of the 61.8% Fibo area. A breach below the final defence line could push the price further downwards towards the 140 area.
The relative price strength line (RSI) showed little hope for a near term recovery as indicated by the near vertical downward trajectory of the indicator.
Any open positions in AAPL should be closed at the moment, as we may not know how far the market will fall. We should park our cash to other instruments that may well be a good beneficiary on this corrective market moves, such as gold and to raise cash to buy on the next market rebound. It is not advisable to take on any new positions for now.-/-
