Apple Inc (NASDAQ:AAPL) stock is about to make a Death Cross on the technical charts. The stock is increasingly being seen as priced favorably relative to its Magnificent 7 peers.
Chart Source: Benzinga Pro
Apple Stock Offers More Value Relative To Magnificent 7 And As Part Of GOMAAM
The stock, down over 10% YTD, is trading at attractive valuation multiples relative to technology sector peers.
Related: Apple And 4 More Stocks On The Rise: Prime Reddit Picks
Redditors debating on AI also believe that Apple stock — as part of the GOMAAM stocks, buyers of AI hardware — are offering better value currently than AI hardware suppliers such as NVIDIA Corp (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD).
Related: Redditor Sees More Value In These AI Stocks Than Nvidia, AMD
The GOMAAM stocks consist of Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) aka Google, Meta Platforms Inc (NASDAQ:META), Apple, Amazon.com Inc (NASDAQ:AMZN), and Microsoft Corp (NASDAQ:MSFT). This group also includes OpenAI.
Technical Indicator Spells Caution
A technical indicator emerged to spell caution to those looking to buy-the-dip.
The Death Cross is a technical analysis pattern in the stock market that occurs when a short-term moving average crosses below a long-term moving average. Typically, the Death Cross involves the 50-day moving average crossing below the 200-day moving average.
In the chart above, Apple stock’s 50-day simple moving average (SMA) (orange line) can be seen approaching the 200-day SMA (blue line) from above to make a Death Cross signal. This pattern is considered bearish and may suggest a potential reversal of an uptrend, indicating that a stock or market might be entering a period of decline.
Also Read:
- Apple And 4 More Stocks On The Rise: Prime Reddit Picks
- Market makers trigger a Tesla stock anomaly on Thursdays, here’s how to exploit it.
