In a concerning development for investors, Apple (AAPL) stock has recently formed a "death cross" on its chart, indicating potential further weakness in the near future. The death cross occurs when a stock's 50-day moving average crosses below its long-term 200-day moving average, a change often seen as a sign of more price declines to come.

Apple's death cross occurred on March 14, with its 50-day line crossing below the 200-day line. The last time this happened was in June 2022, coinciding with a significant decline in the stock. Since then, the death cross has expanded, further exacerbating concerns among chart readers and potentially attracting those looking to short the stock.

The bearish features in Apple's stock chart point to a deteriorating situation. After breaking out of a cup-with-handle base in December 2023, the stock started to roll over just two weeks later. It undercut its 50-day line on January 2, triggering the first sell signal. Despite a rebound in January, the stock continued its decline, with the 50-day line curving lower in February and shares moving below the 200-day line, signaling further selling pressure. Additionally, significant volume spikes on down days and a low up-down volume ratio indicate lower demand over the past 50 days.

Furthermore, Apple's profit outlook does not inspire confidence. Analysts anticipate more challenges for the iPhone maker, including waning demand, particularly in China, as competition from Chinese rivals intensifies. Although Apple's sales increased modestly by 2% in its most recent quarter, it followed four consecutive quarters of decline. Quarterly profit rose by 16%, showing improvement from previous flat or single-digit gains. However, estimates for the March quarter predict flat profits with a 4% decline in sales.

Given these bearish indicators, it is evident that Apple faces significant headwinds in the coming months. The death cross formation has added to the already growing pessimism surrounding the stock, potentially leading to further sell-offs. As of now, Apple stock has lost around 11% in 2024, underperforming most of its peers, with only Tesla faring worse. Tesla also experienced a death cross in February, further emphasizing the challenging environment for tech stocks.

Investors will be closely monitoring Apple's performance and whether the company can reverse its downward trajectory. However, with analysts predicting only modest improvements in the near future, the road to recovery may be long and challenging for the tech giant.