Apple's Stock Peeks Above Its 200-day Moving Average Intraday, But Closes Below It

By Markets MarketWatch Pulse

Apple Inc.'s stock climbed above its 200-day moving average in intraday trade Monday, for the first time in five months, before paring gains late in the session to close below that key technical threshold. The stock closed up 1% at $111.08, and was up as much as 2% at 4 1/2-month high of $112.19 earlier in the session. The 200-day MA extended to $111.32 Monday, down from $111.40 on Friday. Many technicians use the 200-day MA as a guide to the long-term trend, so stocks above the line are considered to be in longer-term uptrends, while those below it are considered to be in downtrends. History suggests, however, that crossing above the 200-day MA isn't always a strong buy signal. Apple's stock had run up to a 3 1/2-month high on Nov. 3, to close above its 200-day MA for the first time in 3 1/2 months. Just two days later, it closed back below that line, and fell another 23% before bottoming nearly three months later.

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