AAPL Apple Daily Chart H&S Gap Fill

Apple has the markets in a joyous mood to begin Wednesday trading.  Note the gap fill that is needed at 605-ish.  A back kiss of the 20-day MA at 607.84 would also be a great test for resistance. We watched the negative divergence with the red lines lead to the top and roll over. Note the teal lines are all weak and bleak desiring lower prices moving forward despite any pop that occurs today.  The teal falling wedge helps bounce price today.

A price move back up to 600 plus would create a new right shoulder for an H&S shown in neon green. If the neckline at 550-560 fails on the way back down then the 475 support would be targeted next.  Note the distribution volume occurring in recent days with shares thrown overboard as price dropped.  The bounce today will entice some additonal bag holders to come in and willingly buy the hype. Watch the price action in relation to the gap fill at 605-ish and the 20-day MA at 608-ish since this will help determine if the rally has staying power or if it is simply another shorting opportunity. 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.