Descending Triangle in Apple?Apple has struggled all year, and evidence of a downtrend may be growing in the tech giant.
The first pattern on today’s chart is this month’s lower high relative to mid-May. Combined with the May 7 low of $193.25, some traders may think a descending triangle is taking shape. That’s a potentially bearish formation.
Second, TradeStation data shows that AAPL is the only trillion-dollar company now trading below its 200-day simple moving average (SMA). The 200-day SMA has also turned lower. Those points may confirm long-term price action is less bullish.
Next, prices remaining below the falling 50-day SMA may signal intermediate-term weakness.
Fourth, short-term trends may be weakening: The 8-day exponential moving average (EMA) is below the 21-day EMA and MACD is falling.
Finally, AAPL is one of the most active underliers in the options market. That could help traders take positions with calls and puts.
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