Apple (AAPL) stock is one to watch. Partially because it’s the biggest company in the world and partly because it holds so much weight from a sentiment perspective.
However, it’s mostly important because it’s the best performing MMAANG stock right now — that is, FAANG plus Microsoft (MSFT) and Meta (MVRS) instead of Facebook.
Apple has held up the best among mega-cap tech, down just 15.4% from its highs coming into Monday.
That’s pretty impressive, as it’s outperforming the Nasdaq and the S&P 500. Outside of oil, it’s outperforming most stocks, even as Apple stock falters following last week’s product event.
However, Apple is lagging the market on Monday, with the S&P 500 higher on the day and Apple down about 1%.
Knocking it lower is the news that “Foxconn has halted operations at its Shenzhen facilities as part for that city's attempt to slow the spread of Covid.”
Apple stock was down as much as 2.2% on the day, which follows a two-day 5% skid from Thursday and Friday. How do the charts look from here?
Trading Apple Stock
Chart courtesy of TrendSpider.com
Apple stock was greeted with a sell-the-news reaction last week, with Wall Street shrugging off its new products and ideas. In this climate, that’s no surprise.
With this morning’s open, Apple undercut the February low at $152, but found its footing between the 200-day and 50-week moving averages and near the $150 area. The $150 zone was resistance in 2021 and is acting as support in 2022. At least so far.
However, now we’re in a bit of a quandary with Apple stock.
The stock is rebounding nicely over last month’s low, giving active traders a nice bullish reversal day trade. If it gains momentum, it has the potential for a larger swing trade.
That said, the stock is struggling with the 200-day moving average and near Friday’s and last week’s low of $154.50. If it fails to recover these marks and regain $155-plus, then the bears may very well remain in control.
Above these measures puts active resistance in play, which has been the 10-day and 21-day moving averages.
On the downside, it’s a break of $150 and the 50-week moving average that bulls need to be cautious of. Below these marks and the $138 to $140 area is in play.
Near that zone, Apple stock finds its rising 21-month moving average and a prior breakout zone. However, the larger risk at that point is the broader market. If Apple rolls over, will the rest of the market not be rolling over with it?
It’s hard to believe it won’t be.
