Advance Auto Parts, Inc. AAP stock price is down by 15.82% in the current month. It faced rejection from $70.0 and continues to decline by forming lower-low candles.
AAP stock is in a strong downtrend and sellers are continuing their dominance. Any short-term pullbacks are facing rejection at the 50-day EMA showcase sellers are still active on higher levels.
At the end of May, AAP stock price showed a massive gap down of 35%. It eroded a big portion of the market capitalization and hurt the sentiment of the long-term investors.
Later, the prices showed another phase of sell-off and hit a low of $62.00. After the massive sell-off in Advance Auto Parts stock price began to consolidate in a wide range between $63 to $75.
Buyers tried multiple times to break the higher range to bring back the confidence of investors. But they did not succeed and prices remained in a range. Recently, sellers took over the control and dragged the prices below the $63.00 support which invites further decline.
Advance Auto Parts stock price closed the previous session at $57.93 with an intraday rise of 0.82%. The market capitalization stands at $3.45 Billion.
Will AAP Stock Price Decline Further?
AAP stock price is down by 61% on a YTD basis. It has corrected a lot from its YTD highs but still no signs of recovery are visible.
The price pattern is highly bearish due to this fresh buyers look reluctant to build long positions. However, the short sellers are highly active so a wild short squeeze may trigger to clear out previous shorts.
Till AAP stock price trades below $81.00, it is expected to remain in a bearish grip. However, if in future prices recover and succeed to break $81.00 then the short trend may reverse.
Advance Auto Parts Stock Price Showed a Steep Fall
Advance Auto Parts stock price hit a multi-year low and showed a steep downfall. This type of correction in stock shows that some genuine investors have exited from the higher levels.
AAP stock is bearish on daily, weekly, and monthly time frames. Therefore, more downfall is possible.
The MACD curve slopes down indicating bearish momentum might continue in the coming weeks. The RSI at 28 denotes oversold territory so a temporary pullback is possible.
Advance Auto Parts, Inc. AAP stock price fell 15.82% in the current month. It corrected a lot but still no signs of recovery are visible. The technical analysis suggests, that Advance Auto Parts stock price is highly bearish and a downside is possible.
- Resistance levels: $70.00 and $81.00
- Support levels: $55.00 and $50.00
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