AAPL Apple Monthly Chart; Overbot; Negative Divergence Developing; Upper Band Violation

The FAANG (FB, AAPL, AMZN, NFLX, GOOGL) stocks monthly charts have topped out except for mighty Apple. Remember before the last earnings release the rising wedge (bearish) was in play as well as overbot conditions and negative divergence except for the MACD. It was a matter of simply waiting for the MACD to roll over to begin sustainable downside Then, bingo. The earnings surprise to the upside. At the same time, billionaire Warren Buffett and CNBC commentator Jim Cramer cheerlead the stock. The new product release event goes well pumping the stock higher. Other sound bites pump Apple higher.

AAPL leaps higher as the long white candlestick shows and the last couple months is flat action. All the indicators are in negative divergence sans the MACD line that remains long and strong (green line). Therefore, AAPL likely has one more rally in it to match those highs over the last three months. For this month, the FAANG stocks collapsed starting the first few days of October after matching price highs printed with corresponding neggie d. Apple may be about one month behind the others.

Price has violated the upper band so a move back down to the middle band at 172 is on the table for the weeks and months ahead. A nice shorting opportunity will likely set up if Apple comes back up to those 230-ish highs as the bullish MACD line suggests. Simply watch for when the MACD line curls over and negatively diverges against price. That will mark the multi-week, multi-month and perhaps multi-many year high for mighty Apple.

If you made a lot of money on AAPL, or even if you have not, it is likely prudent to exit stage right before the doorway becomes jammed with bodies. Toss your shares to Buffett and Cramer who continually and enthusiastically tell folks to "buy, buy, buy!" 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 on Thursday Evening, 11/1/18: AAPL reports earnings and is whacked -7% lower briefly losing its $1 trillion market cap.