It’s far from unheard of for Apple’s stock to fall into correction territory, which is generally defined as a drop of 10% or more from a stock’s most recent price peak. This year, two corrections have already happened – one in January-February and another in March-April.
On Friday, in the aftermath of Apple’s latest earnings release, the stock gapped down and slid into a correction yet again, falling at one point more than 7% below Thursday’s close as investors digested the mixed news. Despite the company’s earnings beat, Apple issued a disappointing forecast and announced that sales figures for the iPhone and other key products would no longer be released.
Bearish sentiment ruled the day for Apple, helping to weigh further on the broader indexes, and the stock entered into a correction at one point well, down more than 11% from its early October, all-time closing high around $232.
The earlier corrections this year both resulted in relatively quick reversals back in the direction of the prevailing uptrend, as is often the case for Apple’s stock. Will such a swift recovery happen this time around? The chances may be good, as the technicals continue to support a continuation of the longstanding bullish trend after the correction.
Source: TradingView
