Apple IncShort
20DMA Crosses over 30EMA on AAPL, a Signal to Reduce or Sell Sho
Updated
When the Fast Red Line which is the 20 DMA (10-Displaced Moving Avg) crosses over the Slow White Line which is the 30EMA, this can sometime indicate it is time to reduce and possibly sell short the underlying.
When this TA is applied to AAPL's bearish moves going back to June-2017, we can see we get the signal to reduce our long positions or get into a short position. This seems to be accurate.
Reading a chart with a DMA can be tricky when looking at historical data. This is why I draw boxes that encompasses 10 bars then drag this box so that it the crossover signal is the bar in the left side and the last bar on the right of the box would be where we would first notice the signal.
We also see that in about 20-25 bars (trading days) after the signal is first detected that AAPL will trend downwards.
Based on this TA, we may see a bearish move on AAPL starting around April 3 to April 13. This move may go down to several levels of support before stopping: 302, 293, 268, 254.
We can be bullish again on AAPL when the Fast Red Line crosses back below the Slow White Line. On AAPL, it appears that recovery to bullish positions can take between 20-80 bars.
COVID-19 also doesn't appear to be under control yet as we continue to receive more news of it spreading. How will this affect the release of new iPhoneSE2 and the new iPad? Should we expect manufacturing to slow?
When this TA is applied to AAPL's bearish moves going back to June-2017, we can see we get the signal to reduce our long positions or get into a short position. This seems to be accurate.
Reading a chart with a DMA can be tricky when looking at historical data. This is why I draw boxes that encompasses 10 bars then drag this box so that it the crossover signal is the bar in the left side and the last bar on the right of the box would be where we would first notice the signal.
We also see that in about 20-25 bars (trading days) after the signal is first detected that AAPL will trend downwards.
Based on this TA, we may see a bearish move on AAPL starting around April 3 to April 13. This move may go down to several levels of support before stopping: 302, 293, 268, 254.
We can be bullish again on AAPL when the Fast Red Line crosses back below the Slow White Line. On AAPL, it appears that recovery to bullish positions can take between 20-80 bars.
COVID-19 also doesn't appear to be under control yet as we continue to receive more news of it spreading. How will this affect the release of new iPhoneSE2 and the new iPad? Should we expect manufacturing to slow?
Note
I didn't expect the move to occur so soon. AAPL has moved down to the next level of support and if the COVID-19 continues unabated we can likely expect further decline due to reduced manufacturing and reduced demand in China.
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