AAPL Apple Weekly and Daily Charts Rising Wedges Overbot Negative Divergence Bollinger Band Targets

We looked at the weekly Apple chart about a week or so ago and was looking for a smack down, and weakness has entered the picture this week, AAPL down 2% this week thus far. The weekly chart is a sick pup.  That is an ugly chart showing a ticker that has topped out and is now rolling over. 680 is very important since Keystone's 80/20 rule says that a move to 720 is likely if a close above and into the 680's occurs. The weekly chart Bollinger Bands also show price piercing the upper BB so a move to the middle BB, at 602-ish would be targeted, at a minimum, and also the lower BB at 520.

On the AAPL daily chart, the red rising wedge, overbot conditions and solid negative divergence for the indicators (red lines), show that a smack down was needed and that began three days ago. The blue rectangle shows a key reversal day where price placed a higher high than the prior day and closed with a lower low, a bearish indication moving forward.  Yesterday's candlestick is a hanging man, also indicative of an overall trend change occurring. The black dots show how when price touches the outer BB, it strives to move back to the center BB, if not the opposite BB, and cycles thru this behavior over and over.  A couple weeks ago the upper BB was pierced, and price has already tagged the center BB at 664, which is also the 20-day MA.  The indicators are weak and bleak wanting to see lower lows in price moving forward. Stochastics just ruptured the 50% level and is heading straight down. The lower BB target at 640 is reasonable. Watch the sideways channel thru 640-680 since the bulls win above 680 and the bears win below 640.

Projection is a continued topping and rollling over for AAPL moving forward. Prior messages discuss the iPhone5 in greater detail so no need to mention those again. In general, the consensus is mixed on the release yesterday.  From a subjective perspective, the new phone now keeps pace with the competition but looking at them side by side the screen continues to appear a shade smaller. Initial projection is for a test of 640 when the chart can be reassessed. At this juncture, a move to 640 then 602 (the weekly midle BB) would be in order. 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.