Schedule of the week – Apple
Apple’s “Death Cross” before WWDC 2022
Medium-term technical analysis (1 to 3 months)
Printed time: 5 June 2022 at 12:00 SGT (click to enlarge chart)
Source: CMC Markets
- Apple Inc will hold its annual 2022 World Developers Conference next week from Monday (June 6) to Friday (June 10). New updates for iOS / iPad OS, macOS and watchOS are likely to be announced. The focus for market participants is whether there will be a release of mixed reality development tools for its combined AR / VR (augmented reality / virtual reality) headphones to wear, a future key revenue stream for Apple.
- From a technical analysis point of view, Apple’s recent pricing actions (AAPL) do not seem promising to support the view that we reached a big bottom process on May 20, 2022, launching a new impulsive upward sequence for a new all-time high .
- Bear bias below 152.50 key medium-term core resistance for another potential downward impulsive sequence within its main downtrend phase, in effect since 4 January 2022, to retest the recent 20 May bottom of 132.62 and a break below it could lead to an additional potential decline to the key support area of 126.00 / 118.45.
- On the other hand, a clearance with a daily closing above 152.50 invalidates the downward scenario for the extension of the corrective rebound from the low level on May 20, 2022 to the next resistance at 171.50 (also 76.4% correction of the downward movement from the highest level of January 4, 2022. May 20, 2022 low).
- Based on Elliott’s wave / fractal analysis, the key support area 126.00 / 118.45 may see the end point / end point for the first phase of the multi-month phase of a major downtrend (wave A) of a high level from 4 January 2022. possible multi-month (1 to 3 months) corrective recovery / consolidation (Wave B) to occur to track part of the previous main downtrend.
- Bear items; the recent recovery of 14.4% from the lowest level on 20 May 2022 to the highest since 1 June 2022 was accompanied by a lower / declining volume, the first sighting of a “cross of death” signal (50 -day moving average below 200-day moving average) after its Previous main uptrend phase, which started from a low level on March 23, 2020, the RSI daily oscillator caused a downward reaction immediately after re-testing its key corresponding resistance level of 51%, which suggests that the medium-term downward momentum of price action remains intact.
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