AAPL Apple Daily Chart Overbot Rising Wedge Negative Divergence Island Reversal Gaps Channel Doji Hanging Man

This AAPL chart is becoming a regular posting every couple days lately.  Nothing has changed, except price moving higher, of course.  The red lines show the negative divergence firmly remaining in place, desiring a smack down for price now.  The RSI and stochastics indicators are overbot in nose-bleed territory while throwing off negative divergence at the same time. The rising red wedge is also bearish. The two candles over the last two days show a doji yesterday and hanging man printed today. These indicate a trend change occurring but they need a day that shows follow-thru, which would be tomorrow.

The neon green circles highlight the gaps left behind as price enjoyed an upside orgy, from 360 to 550 in 12 weeks, a truly impressive move of over 50%, or about 4 or 5 % per week for three months straight.  What a powerhouse, or at least perceived powerhouse.  Keystone has been looking for the reversal from 525 and higher; price now 20 bucks or so above that level.  Similar to a parabolic commodity stock move, this will be quite spectacular to watch as it reverses.  The strength in AAPL has provided the last step up for the broad markets so the implications from Apple selling off go far beyond simply one stock puling back.  Apple is the market now.

Thus, a sell off is expected now, at any time, tomorrow would be an ideal start for a down move since it provides the confirmation follow thru that the doji and hanging man candles would like to see.  Note the MACD line is sloping upwards (green line), this says that after some selling occurs, price will want to bounce again to satisfy this positive MACD line, then on that bounce back up, negative divergence should show across all the indicators including the MACD line and a more firm down move will then occur.

An island is formed above 444, so if price comes down to 444 and then gaps down to 430-ish or lower, that will create an island reversal pattern.  The 430-440 gap area is a large target regardless. Projection is a move down to the 420-444 area in about the same amount of time it took to move up from mid-January, or sooner, since these moves can result in a dramatic drop/s.  The impact of Apple selling on the broad markets is obvious. Watch Apple closely, AAPL is the markets. 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.