Pace of FANG Rout Turns Technical Signal to Buy Ahead of Apple
(Bloomberg) -- Tech bulls eyeing Apple Inc.’s earnings release as the last best hope for an end to the group’s recent rout have another reason for optimism: The latest selling has been so severe that a technical indicator is now flashing a buy signal.
A measure of relative strength known as the Williams Percentage R Indicator tumbled below -80 as the NYSE Fang+ Index’s slide reached 9 percent over three days. Chart watchers view selloffs as overdone when the measure reaches such depths.
The indicator’s recent track record has been solid. It signaled the NYSE FANG+ group was overbought on Jan. 29; a week later the cohort had plunged 8 percent. The index rose 0.3 percent as of 11:28 a.m. Tuesday. Apple reports results after markets close.
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