AAPL Apple Monthly Chart Rising Wedge Overbot Negative Divergence Developing

The AAPL monthly chart is universally negatively diverged across the multi-year time frame (red lines). The histogram and money flow have long and strong strength remaining from the two-year time frame and the RSI, MACD line and money flow have upside juice available from the action since summer time. So a pull back is needed but price wants to come back up for another look at the 120 level. Since this is a monthly chart, however, Apple may sell of in the near term then return to the 120 and more in January-February which will likely create the multi-year top.

Price is extended above the moving averages and needs a mean reversion. The small circles show distribution taking place. Much of the smart money is exiting handing off shares to the sucka retail investors that are hyped-up on the constant daily cheer leading by television pundits to "buy, buy, buy!" The folks touting Apple stock in the media are the same ones distributing their shares; pump and dump. The projection would be for a pull back say into January, then a move higher again to probably finish printing in the apex of the rising wedge, then failure from there. If you enjoyed the ride higher since the 2013 low, it would be prudent to exit and look for opportunities elsewhere. 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.