Technical Update - Intel, Arm and Amazon in heavy sell-offs. Apple holding on - for now Technical Update - Intel, Arm and Amazon in heavy sell-offs. Apple holding on - for now Technical Update - Intel, Arm and Amazon in heavy sell-offs. Apple holding on - for now

Technical Update - Intel, Arm and Amazon in heavy sell-offs. Apple holding on - for now

Equities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Chip maker Intel released earnings after market close yesterday that disappointed the market. Shares were down 17% in after-market trading. That was after dropping 5.50% in the ordinary trading session.
Intel is estimated to open around 23.00, a price not seen since 2014! See the dashed blue line on the monthly chart.

Bargain hunters could try lifting the share during the session, but it could be like catching a falling knife. The share price could very well drop further. There is not any strong support until around 19.16, a level not seen since 2012! If that level does not hold, the next one is at around 17.60. Minor support at around 21.89.

Source all charts: Saxo Group
Arm Holdings got hammered yesterday after earnings, and the beating seems to continue today.

Minor support at 108.69, where the 200 daily moving average also will give some support. But a sell-off down to support at around 94.40 could be seen over the next couple of weeks.

The strength indicator RSI is showing negative sentiment, indicating likely lower Arm levels.

A daily close above 145.50 will short-term demolish the bearish trend. 

However, the weekly chart has formed a Doji evening top and reversal pattern (cirlced) strong indicating lower levels 

For more analysis on semiconductors, see this video: Cramers Corner Technical Update Global Equities

Apple opened yesterday higher but got hit by selling that lasted throughout the trading session, thereby forming a bearish engulfing candle. That comes after a top and reversal pattern formed mid-July. Apple is set to open unchanged, but if closing below 214.60, it would confirm its downtrend in the short term.

On the weekly chart, Apple has formed a bearish engulfing top and reversal pattern. Combined with divergence on the strength indicator RSI (RSI values have been declining while share prices have been climbing), the bullish trend is in exhaustion mode and could very well be over.

A close below 206.59 will further confirm the medium-term bearish trend with short-to medium-term potential to the strong support around 198.25, but could drop further to the 192–187 area.

To reverse this potential bearish picture short-term, a daily close above yesterday’s peak at 224.50 is required. If that scenario plays out, there would be potential to challenge the all-time highs recorded last month.

Daily RSI is still showing positive sentiment, and a close above 60 will be a good indication that Apple will resume its uptrend and possibly reach new all-time highs. An RSI close below 40 will confirm the bearish trend.

Amazon is indicated to open lower at around 168.70 after earnings last night. That would be around the 200 daily moving average just above the support at around 165.75. This support could be tested during today's session.

A daily close below 165.75 could send Amazon lower to around 161–160.

The strength indicator RSI is showing negative sentiment, indicating lower share prices are likely.

A daily close above 172.30 could give a short relief rally short-term, demolishing the bearish trend.

Medium-term, the weekly chart shows Amazon has closed below its rising trendline. Combined with RSI divergence (RSI values have been declining while share prices have been climbing), it is an indication of uptrend exhaustion.

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article
Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.