Monday, August 10, 2015

AAPL Apple Weekly and Daily Charts

The Apple drama remains a popular focus by traders. Keystone described the top forming in AAPL over the last few months and price rolls over to the downside. The red rising wedge pattern, overbot conditions, solid negative divergence in the indicators (red lines) and price overly-extended above the moving averages (blue dots) requiring a mean reversion all create the spankdown off the top. Note the importance of the 20-week MA over the last three years. It is a big deal that AAPL cannot hold the 20-week MA now at 125.73.

Price drops under the 50-week MA at 116.69 but recovered to close in this vicinity for the weekend at 115.52. AAPL has not been under the 50-week since August-September 2013 about two years ago. Price may want to play around at the 116.70 level to begin the week. A back kiss of the 20-week MA at 125.73 and falling is on the table.

The indicators are all weak and bleak (red lines) pointing a dire picture for the weeks ahead. The stochastics are not yet oversold which would create an initial bounce but the chart is very weak. Last week's selling volume was robust but did not exceed the buying volume in late January a plus for the Apple bulls. AAPL will bounce but the chart indicators hint that lower lows in price will be needed in the weeks ahead before a tradeable bottom would occur.

The daily chart highlights the 200-day MA now at 120.13; this price level is a logical target for an AAPL bounce. Apple lost the 200-day MA in late 2012 ushering in weakness but recovered in August 2013 when the stock began a rally into the last couple weeks with the 200-day failure. Note how price back tests the 200-day MA after it crosses so a back kiss would be expected now as well and the path ahead will be decided at 120-ish with price bouncing, or dying. 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.

Note Added Tuesday morning, 8/11/15: AAPL explodes +3.6% higher in Monday trading to 119.72. The 200-day MA is 120.22. The 20-week MA is 125.61. The 50-week MA is 117.06.

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