AAPL Apple Weekly Chart Bull Flag and Cup & Handle Patterns Overbot Negative Divergence

Apple is receiving lots of attention with the new product launches this week. Technically, the chart is setting up for the bears. The thin blue lines show a bull flag pattern already played out with the first leg from 55 to 80, then sideways consolidation, then the second leg begins at 70-75 which targets 95-100, achieved. The purple cup and handle pattern is also in play with break out line at 80 and base of cup at 55 so the target is 105. Thus, the patterns target 95-105 and price has printed above 103; close enough for government work so a few more potential points of upside is not worth chasing.

The red lines show universal negative divergence across all indicators as compared to the last price peak in 2012 as well as over the shorter term few-month time frame. The stochastics and RSI are overbot and price moves up through a rising wedge; both bearish. The neggie d creates an initial slapdown and there is no reason for price to print another high from here. The negative divergence is firmly in place and the RSI, stochastics and money flow are all weak and bleak starting to print lower lows.

The projection is for lower prices ahead for the weeks and months to come. Perhaps a couple-few more bucks to 105-106 may print but this would likely be a gift for shorts if it occurs and is akin to picking up nickels in front of a bulldozer. Price never back kissed the 80 breakout level so it would be prudent to visit this area and the last large volume candle at the start of the year at the 70-80 range is a realistic target for the months ahead in 2015. A short position in AAPL can be developed here forward. Keystone has no current position in AAPL. 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 9:42 AM: AAPL immediately drops to test the 20-day MA at 100.21 and bounces slightly. Use this 100.20-ish level as an important indicator for Apple strength, or lack thereof. AAPL is printing 100.53. The 50-day MA is 97.26 and rising.