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Apple Inc. | $AAPL Stock | Has Apple Begun A Technical Breakdown?

|About: Apple Inc. (AAPL)

Apple Inc. (NASDAQ: AAPL)

When the market opened for trading the day after Christmas on December 26,2017, shares of Apple gapped down and traded for the most part of the day in a tight range. The tight range may have been caused because Apple is at a critical technical level.

Technical analysts use this level to analyze stocks and other type of investment price charts, as well as indicators when they make their buy and sell decisions and recommendations. And today, Apple did something that many stocks do when they run into trouble.

The shares gapped down almost exactly onto the 50 period movaing average price level. This is a key level that many mutual fund managers, traders, and hedge fund managers look at as a meaningful longer-term support level.  

Usually if a stock is below it, shares are considered to be bearish and above it shares considered to the bullish. Apple is now testing that level and all eyes will be on it as we end the year and head into the new year of 2018.

Shares closed the regular trading session at $100.57 which was down 2.54%. The aftermarket saw little action but the shares wound up closing at $170.60 which was up $0.03 in the aftermarket.

Given that apple pays a hefty dividend of 1.48% annually, it will be interesting to see if new buyers who are looking for excellent and safe dividends step in and buy the shares to be able to participate in the dividend payments.

Some Apple iPhone X Estimates by Analysts

JL Warren Capital expects Apple to ship 25 million iPhone X units as consumers baulk at the "high price" and "lack of interesting innovations."

Chicago-based Loop Capital estimated in a note last week 40 million to 45 million first-quarter shipments.

Jefferies forecast about 40 million first-quarter sales.

Rosenblatt Securities foresees first-quarter production estimate of 35 million units.


The Price Chart

The above price chart shows apple on daily time frame. As you can see in the price chart shares have respected the longer-term green support line. However, the shaded area indicates where Apple opened today at much lower levels, and then traded range-bound until the close at 4 p.m.

Note the key technical level right near the 50 period moving average in yellow dots. This is the key level that many eyes will be watching between now and the end of the year.

Company Profile

Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, and education, enterprise, and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications.

It offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers. The company also provides iLife, a consumer-oriented digital lifestyle software application suite; iWork, an integrated productivity suite that helps users create, present, and publish documents, presentations, and spreadsheets; and other application software, such as Final Cut Pro, Logic Pro X, and FileMaker Pro.

In addition, it offers Apple TV that connects to consumers’ TV and enables them to access digital content directly for streaming high definition video, playing music and games, and viewing photos; Apple Watch, a personal electronic device; and iPod, a line of portable digital music and media players.

Further, the company sells Apple-branded and third-party Mac-compatible, and iOS-compatible accessories, such as headphones, displays, storage devices, Beats products, and other connectivity and computing products and supplies. Additionally, it offers iCloud, a cloud service; AppleCare that offers support options for its customers; and Apple Pay, a mobile payment service.

The company sells and delivers digital content and applications through the iTunes Store, App Store, Mac App Store, TV App Store, iBooks Store, and Apple Music. It also sells its products through its retail and online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.-YahooFinance

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.