AAPL Apple Weekly Chart Negative Divergence

Blow-out earnings numbers for Apple tonight but, getting away from the noise, and looking at a weekly chart, the story is not exciting. Negative divergence rolled price over in February. Price stumbled sideways with a sideways down bias ever since--until a month ago when this rally started. Now we are at a higher high in price again, after hours this evening was printing 400 handles. The blue lines for the indicators are not impressed with this price jump, all are currently negatively diverged.

Novice traders should watch out from getting caught up in the hype and euphoric party. The weekly chart shows that there is nothing to be excited about. More than likely the pro's will distribute to all the sucka's coming in to buy because of the great earnings news hype. Even if you would want to go long, price looks to want to check 350-360 at some point forward so you may as well wait for that. Also, a likely outcome is that these prints around 400 that will occur tomorrow and in the coming days may be the head for an H&S, the left shoulder is February, a right shoulder will have to form over the coming months.

Keystone's 80-20 rule says that a ticker typically moves to grab the 20 level if the 80 level is achieved. Thus, AAPL should close above 380 tomorrow so a move to 420 would be in play. The projection is that Apple is placing a long term top currently in this 390-425 range, a top that will not be seen for a long long time. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.