AAPL Apple Weekly Chart Oversold Falling Wedge Positive Divergence

AAPL bounced on divvy rumors yesterday. That must have been a long trader sick of waiting for Apple to recover so he called the local news station to pump the action. Today's action will be interesting. The bounce over the last two weeks was forecasted by the falling wedge, oversold conditions and positive divergence (green lines).  But notice the MACD line, we talked about this a couple weeks ago.  Price should retreat again to satisfy the MACD line since it wants to see one more lower low in price, then will likely set up with positive divergence to join the bull party.  Thus, AAPL should come back down for another low print at 415-430, and then she will be ready to go full force upwards. The question is simply from where does the pull back occur. With the divvy rumor, Apple can run to 450 right now, and a move higher cannot be ruled out if the divvy talk grows today, before the final pull back occurs. 

So there are a couple different paths. If a short term or day trader type, and gains exist from the two week pop, take the money and run and wait for the pull back to reload.  If shorter term trading is not your bag, and you are in the stock, then do not look at Apple for a month or two and you will be pleasantly surprised as it likely ventures towards resistance at 450 and 480.  If not in the stock right now, simply watch to see if the pull back occurs as the chart forecasts, then that would be the time to enter. So Apple allows you to choose your poison moving forward, but up is the likely direction forward, especially when the MACD agrees, and with all indicators positively diverged or long and strong, this should lead to multiple weeks of up.  However, as mentioned last time, the luster should come off the rose as beach time nears and AAPL will likely leak lower again and venture into the 300's as 2013 motors along into 2014, reestablishing the sideways channel through 300-400. The 340 support is key and would not be surprising to see come Labor Day or Thanksgiving. 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.

Note Added 3/12/13 at 9:10 AM: JEF downgrades AAPL this morning, that is great news if looking for a long entry as per the chart above. The stock was beaten from 700 to 400 and JEF finally decides to speak; much of the negativity is likely priced in. The next couple weeks will be interesting for Apple. AAPL is such a huge company, they can simply can workers to make any EPS they like.