Sunday, September 15, 2013

AAPL Daily Chart Golden Cross

Apple price action creates a golden cross where the 50-day MA moves above the 200-day MA. This reverses the death cross that occurred in December 2012. The golden cross does not mean much although it is a feather in the bull's cap. As often happens, like now, price actually pulls back around when the golden cross occurs, just as price popped when the death cross occurred. From an intermediate and long term perspective, the golden cross does give the nod to the bulls.

AAPL based around 380 this summer. The bottom is cheesy, however, since the July low did not print a lower low to create positive divergence. The recovery was more due to oversold conditions than anything. The recent top was just as cheesy since the indicators were not entirely convinced, and price falls from the overbot levels. The indicators are weak and bleak as price makes lows so a lower low is expected after a bounce occurs. The 200-day MA is flat at 457-ish and should be tested as support. So the expectation is for a near-term bottom at 450-460 which is also the breakout level of the inverted H&S. The chart has nice symmetry for the inverted H&S with head at 380-ish, neck line at 450-ish, target at 520-ish, and the price action is following these three key levels.

The weekly chart has a sideways feel to it so the anticipation would be a move through 450-520 going forward. Thus, Apple can be used as a trading stock, buy at the bottom of the range and sell at the top.  If AAPL loses 450, however, the game changes and price will move to the 420-430 area. The sideways behavior forward would still be expected only through a range of 420-480. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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