Late last week, Apple released a quarterly report that beat analysts’ expectations:
→ Earnings per share: actual = $1.65, forecast = $1.63
→ Revenue: actual = $95.36bn, forecast = $94.5bn

However, today AAPL stock price is below the psychological $200 mark, over 7% lower than last week’s high (point E).

Why did AAPL shares fall?

According to media reports, investors were concerned about weaker-than-expected services revenue and disappointing sales in China. These factors have renewed fears that the ongoing US–China trade tensions could have a deeper impact on Apple going forward.

Bearish sentiment may also have been amplified by Warren Buffett’s decision to step down as head of Berkshire Hathaway — as we noted yesterday — since his company is one of Apple’s major shareholders.

Technical Analysis of Apple Shares (AAPL)

Key AAPL price action patterns (marked) show a sequence of lower highs and lows, forming the basis for a downward channel. Fibonacci ratios reinforce bearish characteristics in price movements:
→ The rise from B to C is approximately 50% of the decline from A to B
→ The rise from D to E is around 50% of the decline from A to D

This technical picture suggests a potential bear market, where rallies may be corrective rebounds following impulsive drops. This strengthens the scenario in which AAPL shares could continue falling within the established descending channel.

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