Apple Now Showing Weakness, While Skyworks and Broadcom Fall
Apple’s stock is starting to trade poorly, and I get the feeling it isn’t done going down over the short-term. There is support currently around $168, but after that, we are looking at $165. It is what happens after that, which is the big problem.
But should Apple fall below $165, it is likely headed back to the $150’s, with the potential for more. That red line is a significant uptrend, and should it break that uptrend; problems may lie ahead. But let’s worry about that if it should continue to move closer.
The suppliers continue to trade terribly, and for Skyworks, the market seems intent on retesting the previous lows around $94. Should $94 not hold, well then it looks like we shall be heading towards $82, filling the gap created nearly a year ago.
I have been trying hard to pretend like that gap didn’t exist, or that it would never come back into play. But should Skyworks fail at $94, that is where it is going.
Even Broadcom has now cracked, and is showing signs of weakeness, and has the potential to move back into the mid $220’s.
The rumor mill was at again, but this time instead of Apple falling victim, it was Tesla’s turn. Shares of Tesla fell after CNBC reported that the Model 3 could see further production delays and quality issues. Shares of the stock took a hit when the news started spreading, going from roughly flat to down about $10.
But then after hours, it was reported that Tesla is on pace with current Model 3 projections. So who is right and who is wrong? No clue. But it moved the stock and that all that matters. But again another example of rumors, and how they are starting to get a bit out of control.
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Michael Kramer and the clients of Mott Capital own shares of SWKS, TSLA
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Tags: #apple #suppliers #skyworks #broadcom