Morning Note: Apple’s Bearish Turn: What’s Behind the Stock’s Downward Shift?

Apple Stock May Be Reversing to a Bearish Trend

Apple’s investment plan to reintegrate itself in the Indonesian market was not successful as it did not satisfy the domestic smartphone content requirement of 40 percent. The local commitments that Apple made regarding the manufacturing resolution were not up to par and strong enough; hence, the sales of the iPhone 16 have remained on hold since October of the past year.

Even though Apple has boosted their bid to a billion dollars from the previous offer of ten million, this remains insufficient to satisfy Indonesia’s push for enhanced domestic manufacturing. While Apple aims to unlock this significant market with 280 million residents and over 354 million mobile devices, the negotiations continue until a mutual agreement is achieved.

(Apple Daily Price Chart, Source: Markets.com)

The price has broken through the bullish trend line with significant bearish momentum. It has also broken through the previous bullish structure and is now testing the purple support zone. It attempted to retest the upper resistance zone but was rejected. A failure of this support zone to hold the price will likely drive the price further downward, solidifying the formation of a bearish trend.

Japanese Yen Strengthened by 32-Year High in Base Salaries

Japanese salaries grew 2.7% in November, marking the greatest increase in 32 years, which signifies and brings forth strong economic potential. Economists had projected an increase of 2.7%, but the wages increased by 3%, which is slightly above the envisioned figures.

Wages have been consistently increasing, with a slight increase of full-time workers by 2.8%. This jump marks the strengthening of the economy for 15 consecutive months. The liquidity of wages resulted in speculation of the Bank of Japan increasing interest rates, but expectations of policy changes have been pushed forward because of Kazuo Ueda's recent dovish comments.

(USD/JPY H4 Price Chart, Source: Markets.com)

The price is trending upwards, supported by the bullish trend line, as shown by the higher highs and higher lows. It has also broken through the purple resistance zone, was retested, and found support. However, if the price breaks this bullish trend line, it could turn bearish and push the price downward.

Tesla Might Be in a Bullish Correction

Tesla had a tough beginning in 2025 as it had to report an annual drop in the number of vehicles delivered, this being the first time they were recording the drop. During the year 2024, the company was able to deliver 1.79 million vehicles however, the number dropped by 1.1% as compared to the last year which caused the Wall Street estimate of 1.806 million units to be unmet. As for Q4, still meek results were reported with Tesla only being able to deliver 495,570 vehicles instead of the 504,770 that was estimated.

All this underperformance can be blamed on a multitude of factors, which include the decline in demand in Europe, the increasing preference of people towards affordable hybrid vehicles as well as the mounting competition in the Global Electric Vehicle market.

(Tesla Daily Price Chart, Source: Markets.com)

The price has broken through the bullish trend line with significant bearish momentum and even broke through the previous bullish structure. It rested the purple broken structure but was rejected, driving the price downwards. This solid bearish price action increases the likelihood that the price will continue downward toward the next support zone.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.