AAPL Apple Daily Chart Oversold Falling Wedge Positive Divergence
Lots of folks are watching Apple these days since, as Apple goes so goes the markets. The broad indexes, however, are showing resiliency with the world's largest market cap company losing steam. As the previous chart or two showed, an ongoing falling wedge pattern is in play. The daily chart clearly shows positive divergence in place (green lines) creating the two main bounces over the last two months. The action over the last few days takes on a sideways tone. The RSI is agreeable to a few more bucks of downside but overall, the daily chart is setting up for a more sustainable up move, at the least, a sideways to sideways up bias. But first, price may want to play inside the wedge a while longer. The thin green lines show a narrower falling wedge in play which would only forecast a low in the mid 490's. The main falling wedge shows a price of 475-485 at the bottom rail. If AAPL starts up from here, good luck to it. It appears best, however, to perhaps wait for the 475-495 print for a potential long entry.
The weekly chart is setting up with positive divergence as well, however, the MACD line wants to see another low after a bounce on the weekly basis. The projection is a move to the 475-495 zone over the coming days, pehaps a week (short four-day week next week), or two weeks, then a recovery move. 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.
Great post. I also see the 30 sma on a 6month 30 minute looking like 523 fro a breakout to an upside. That was the price when the big fall came the other day. If AAPL moves over the 523-525 looks like then a breakout to higher highs will happen.
ReplyDeleteForex, you can type tickers into the search box to see if any charts of interest come up that were previously annotated.
ReplyDeleteOn the 30-minute, the 30 SMA is 503. You are correct about the 517-525 congestion zone, thru that and lots more upside, say 535+ for starters, however, that may be a little ways off. Right now, the 30-minute chart hints that a cup and handle is now forming, the cup is very obvious, now price is coming down to form a handle. There is a big gap at 490 that will likely need filled. The 508-ish level is key, that would serve as the breakout line to either perform an island reversal pattern immediately jumping from 508 to 517, or price may simply come up to fill that big 508-517 gap. Lots to study, considering the gap, the 487 may be a potential long entry.
KS you are right. I meant daily 6 month. Thanks much
ReplyDeleteKS, great chart! Apple has earnings due on Wednesday Jan. 23. That maybe the catalyst for higher prices; especially since Apple has not missed a Q1 earnings report since 2003... I may pick up some 490s here.
ReplyDelete