Shares of Apple Inc. dropped Monday below a closely watched chart level, which could swing the short-term technical outlook to bearish from bullish for the first time in six months.
The technology giant stock AAPL, -3.16% started sinking around midday on Friday, helping lead a broad selloff in the technology sector as investors appeared to cash in on recent gains ahead of the weekend. Losses were extended Monday, after Mizuho downgraded Apple on concerns that investor enthusiasm surrounding the iPhone 8’s release later this year is already baked into the stock.
The stock slumped 2.4% in midday trade, after shedding 3.9% on Friday. That put the stock on course to close below its 50-day moving average, which many technical analysts view as a dividing line between short-term uptrends and downtrends, for the first time since Dec. 8, 2016.
The 50-day moving average fell $148.551 on Monday from $148.556 on Friday, marking the first decline since Jan. 6.
Closing below the 50-day moving average would snap a 125-session streak above the line, which would be the longest such stretch since the 132-session streak ended March 15, 2011. After the previous streak ended, the stock dropped 5.2% over the next month, and tumbled about 9% before it bottomed a little over three months later.
Still, the shares were 14% above the 200-day moving average, currently at $127.29, which is widely viewed as a guide to the long-term trend. The stock is headed for the 220th straight close above that line, the longest streak since it closed above it for 472 straight days through July 31, 2015.