The weekly chart prints a doji candlestick last week which hints that a trend change is on tap. Note the doji six weeks ago that called the top. Price tagged the upper band but has not yet come down to tag the middle band, also the 20-week MA, at 181 and rising, so it must be shown respect. The red lines show universal negative divergence across all indicators. Apple is ready to get smacked hard in the weekly time frame. CEO Cook will be cooked and crispy-fried. The chart will likely receive a spankdown from the double-top, or M Top.
On the weekly, note the ADX that verified the strength of the upside move in price starting in March 2017 but in February of this year that strong trend is gone. The ADX is down to 17; there is no strong upside trend in Apple in the weekly time frame anymore; it is history. The brown circles show the distribution days occurring since last Fall. That is the smart money handing off Apple shares to the dumb money. The *ssholes you see on business television touting the greatness of Apple stock are actually selling their shares. Pump and dump. On tv they tell you how great it is so Joe Sucka jumps in to buy AAPL and these same pundits are distributing their shares to these bag-holding fools.
The weekly chart is nasty; run for your life if you are holding Apple long, otherwise you are a sap. Over the coming 2 to 4 weeks, AAPL will likely be sub 180 and probably lower. The lower band is at 161 which is another downside target for the weekly time frame say within a month.
On the monthly, look at that pesky MACD line that remains long and strong. This will provide more upside juice in the monthly time frame so a jog move is likely where price will be spanked lower for a week or few, as per the weekly chart, but then AAPL will likely come back up again in the monthly time frame and print THE multi-month and multi-year top in August-October. Keystone has to see that MACD line go neggie d before the official long-term top is in; it is extremely close.
On the monthly, all other indicators are negatively diverged. The red lines show an ominous rising wedge and the collapses from rising wedges can be quite dramatic. The purple boxes for the ADX show that the collapse in price in 2008 into the start of 2009 was a very strong downside trend. Then the Fed saved the day March 2009 with QE1 to make sure the wealthy's money was protected in this crony capitalism financial system. The upsdie trend was very strong 2009 into early 2013 when it petered out. The strong uptrend in price was again verified by the ADX from late 2014 thru 2015 then petered out again. AAPL was not in a strong uptrend for 2016 and part of 2017 but the central bankers keep printing money and goosing stocks so Apple goes into another strong uptrend at the end of last year to present. Note, however, that the ADX is dead flat for this year. It would be expected to roll over to the downside going forward officially stabbing the strong upside trend in the heart and ending Apple's multi-year run.
The upper band was tagged on the monthly chart so price needs to come down to show the middle band at 157 respect in the monthly time frame, at a minimum. The lower band at 115 and rising is also on the table.
What does all this mumbo-jumbo mean? Most of you probably never realized that charts could supply such important information. AAPL is about to get spanked hard in the weekly time frame say the remainder of this month and for early and mid August. If you have enjoyed large profits, sell half your holdings now. Then you can sell the other half of your Apple say in September when price recovers due to the strong MACD line on the monthly chart. That will be THE top in Apple when the party is over.
These highs in AAPL will likely not be seen for months, a year or two, and probably for several years. Let the head cheerleaders of Apple stock, Warren Buffett and CNBC commentator Jim Cramer, hold the Apple bag going forward; do not follow their lead. They will be crying into their eggnog come Christmas. It will not be surprising to see AAPL at the 115-160 range at the end of the year. That will disappoint a lot of money managers.
Keystone does not have a position in AAPL right now but will likely short it beginning this week taking advantage of the sick weekly chart. Keystone will monitor the daily and 2-hour charts to time an entry for the short side. 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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