Thursday, April 18, 2013

AAPL Apple Weekly and Daily Charts Falling Wedge Oversold Positive Divergence Gap Fill


AAPL has been moving within the falling wedge for 2013 thus far.  A falling wedge is a bullish pattern with price typically breaking out to the upside with a strong spike higher. The red lines show positive divergence across the board that wants to see a bounce, however, the -6% drop yesterday created strong downside momo. Everyone and his bro is talking down Apple now when one-half year ago it could do no wrong. The cab driver told Keystone this morning that Apple is the worse stock in the market now. Folks were wrong at the top six months ago and the negative sentiment now likely indicates the time for a bottom and recovery.

 The RSI on the weekly chart is not yet oversold so there is likely some additional downside for Apple ahead on the weekly basis.  The daily chart indicators show a preference for a sideways move going forward. The price action yesterday fills the gap from December 2011. Projection is a basing and bounce from these levels with a move back up to 425, however, the door remains open to a move back down to 380-ish after the bounce, then another recovery will follow. Overall, Apple should move through the 380-480 into the summer time and may develop into an attractive sideways trading range stock. Keystone opened a long trade yesterday but it is anticipated to be a short-lived trade looking for the bounce over the coming days. Earnings are 4/23/13, Tuesday, after the bell, so this must be factored into the trade over the coming days. Apple may bounce now, then be driven lower into early next week, then catapult higher after earnings. 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.
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7 comments:

  1. AnonymousApril 18, 2013 at 9:07 AM

    This AAPL drama is interesting, 420 does lead to the 380, if anything the news is in regarding CRUS and lower chip orders etc., a downward trend to the 380's (higher end of the 380) is likely if earnings are BETTER than expected. So much manipulation that I feel a run down will be surely the street head fake for a spike after earnings.

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  2. Keystone SpeculatorApril 18, 2013 at 9:12 AM

    The earnings date is 4/23/13, so likely after the close on Tuesday. This is important and should have been mentioned above. Perhaps a bounce this week with weakness reentering to take it down into Tuesday, then big spike higher next Wednesday.

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  3. ArnieApril 18, 2013 at 12:29 PM

    sitting an waiting, played the few bounces on the way down, thinking of buying friday or monday.

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  4. Keystone SpeculatorApril 18, 2013 at 2:12 PM

    Apple under 392 right now, so it may want the 375-395 right away now for the bounce. They are beating it hard today.

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  5. ShaneApril 18, 2013 at 3:15 PM

    Interesting Tidbits on the AAPL. A while back we were discussing the S&P retracing to 1500. Does that still look in play?

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  6. Keystone SpeculatorApril 18, 2013 at 3:24 PM

    Shane, the fight is at 1540 right now which is the neckline for the H&S, so failure at 1540 would target 1485 as the days and weeks play out.

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  7. AnonymousApril 18, 2013 at 4:52 PM

    Well GGOG earnings are sending it higher, will AAPL repeat that after this break to the high 380's as I called this morning.

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