The weekly chart tags the upper band so a move to the middle band, at 184 and rising, is on the table as well as the lower band at 160. A doji candlestick prints for last week hinting at a trend change. The RSI and stochastics are overbot agreeable to a pullback. The chart indicators remain in negative divergence although there is a sliver of near-term strength in the MACD line that may try to create buoyancy in price for a few more days. The expectation remains for lower prices for mighty Apple.
The daily AAPL chart shows price bumping along with a 207-209 ceiling. The chart indicators are all negatively diverged except for the MACD line still sloping a touch higher. This hints that Apple will likely top out in the daily frame, say, mid-week. Price has penetrated its upper standard deviation band so a move to 197 is on the table as well as down to 182.
On the AAPL monthly chart, price has also violated the upper band so a move down to 161 and perhaps the lower band at 120 are on the table for the monthly time frame (a few months in the future). The monthly chart indicators remain negatively diverged except for the MACD line and a touch of near-term strength for the RSI.
Combining the charts, Apple should top out this week on the daily chart and sink for a few days. The weekly chart will likely roll over in a week or two with a few weeks of downside on tap. At that point, say in mid to late September, Apple should bounce as per the monthly chart (MACD long and strong) and rally to the highs once again, however, the MACD on the monthly will likely negatively diverge at that time, say in October, which will mark THE top for the tech giant.
Nothing much has changed as compared to before the earnings. The charts are pricing in the euphoric joy on the earnings release mainly driven by young tech professionals caught up in the hype buying Apple stock with their paychecks afraid they are missing out on big gains ahead. The smart money is very happy passing shares off on the future bagholders.
Keystone still does not have a position in AAPL. The thought was to look for an attractive entry but that did not appear and then earnings came up fast where it is best to simply sit back and watch instead. If you are a very nimble trader, you can play the top in the daily chart say this week, that will last a few days say into next week. The AAPL 2-hour chart displays tight standard deviation bands so a big move is likely coming in that time frame the presumption would be down.
Since Apple is such an emotional stock, it is likely better to let the weekly chart top out, say in a week or two, and perhaps play the retreat to 184-ish. Also, since the stock has momentum on its side, it may be most prudent, on a longer term basis, to simply wait for THE top in Apple which is likely on tap in the September-October-November time frame. The highs seen in this period will likely not be seen again for many months and likely for a couple years or more. Going into late this month and early September, it is reasonable to expect Apple in the 185-195 area. 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.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.