AAPL Apple Weekly Chart Falling Wedge Oversold Positive Divergence

AAPL finally leaks lower to finish the red falling wedge. The indicators show positive divergence (green lines) so price will bounce, but the MACD line wants to see price print another low after the bounce occurs. At that time a stronger bounce may occur from the strong 420 support that will carry Apple sideways to sideways up into the spring perhaps early summer and then perhaps more weakness. The 420 is a critical level since it would lead to 380 if it ruptures, but, by the looks of the positive divergence, the 420 support should hold. AAPL is 430 and probably buyable from here forward since the positive divergence and falling wedge will create a strong bounce from the 420 launch pad.

On a side note, the M top is shown with the purple line. Apple was an easy top to call back in September. It also printed a doji candlestick at the top. The interesting aspect is that GOOG is now an exact duplicate weekly chart of the way that AAPL was at its top in September.  What do you think will happen to GOOG (pink arrow)? GOOG printed a hanging man candlestick instead of a doji but they both signal a trend change. 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.