Shares of Apple Inc.
rose 1.8% in afternoon trading, with the stock continuing to hold above the widely watched 50-day moving average (DMA), which many on Wall Street view as a intermediate-term trend tracker. The stock closed just 2.98% above the 50-DMA on Friday, the narrowest spread since April 28. The last time it closed below the 50-DMA, which is currently at $109.21, was April 21. MKM Partners Chief Market Technician JC O’Hara said while the more important that the actual level of the 50-DMA for the technical outlook of a stock is the slope. On Monday, Apple’s 50-DMA was rising by 0.42%, compared with Friday’s 0.39% rise, which was the slightest gain since the 0.37% rise on July 29. “We find risk-adjusted returns are improved by going long stocks, sectors and indices when the slope of the intermediate-term moving average is rising,” O’Hara wrote in a note to clients. “Investors should trim exposure when the slope turns negative.” The 50-DMA first started declining post-COVID-19 on Feb. 27, but has been rising every day since it May 6. The post-COVID-19 closing low was on March 23. Meanwhile, the Nasdaq 100’s
50-DMA is also still rising, but the 0.13% on Monday is the smallest rise since May 15; the Dow Jones Industrial Average’s
50-DMA rose Monday by 0.16%, and has been rising every day since May 21.