APRN Blue Apron Weekly Chart; Positive Divergence Versus Descending Triangle

Poor Blue Apron trying to deliver their little food packages but getting punched in the face and now sporting a bloody apron. APRN crashed no doubt about that. It was at 60 in 2018 and now 6. Quick, give them a call and order some food to help them out.

As always happens after a bloody mess occurs, the victim is placed on a gurney and taken to the emergency room where they can recover. APRN is looking good as a speculative long play from here forward. The monthly chart looks very good with possie d and the green lines show the positive divergence on the weekly basis above. Price will want to migrate back up to the middle band above 7. The Aroon lines are at max levels one hundo and zero with literally nowhere to go but in a bullish direction; if you asked 1,000 people what their opinion was on APRN stock, all 1,000 would say it is a turd that should be flushed. All of this analysis points to Blue Apron as an excellent speculative long trade candidate.

There is a fly in the Blue Apron soup, however. You see it in the chart. Yes, that ominous red descending triangle pattern. There's always someone around wanting to spoil the fun. And you can see yesterday price fell out of the base of the triangle which is very bearish and harpoons the above analysis. But, another twist. Note how price comes down and it is only testing the uber low from June. If price holds here, the bullish joy will likely be on tap as described above.

The ADX is way down at 10. This tells you that the non-stop move lower is NOT a strong trend lower. The negativity has petered out. Everyone that wanted to sell it, sold it. Boom. Price drops to 6.02-6.04. Keystone is buying some right now. We will see if it crashes or recovers. The 2-hour chart is set to pop. You have to keep a tight mental stop on it because that descending triangle is nasty. If price pops higher from here on out, it may moon shoot higher. It is a very dangerous trade but this is what speculators do. 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 Tuesday Morning: APRN sinks for the eighth consecutive day down 14 cents to 5.95. LOD 5.89. The descending triangle exerts its negativity. Keystone's 80/20 Rule says 8's lead to 2's (on the way up) and 2's lead to 8's (on the way down), so the breach of 6.20 opened the door to 5.80. A 5.8 handle prints yesterday. The breach of 5.92 hints that 5.88 is coming. Sometimes it can overshoot to the downside so price should be given room to breathe, say to 5.70. Price should also want to come back up to kiss the base line of that triangle. Probably some sideways chop for a day or few but the path ahead still looks bright. The 5.7 to 6.0 area is a buy for APRN but below that run like H*ll since the apron will turn bloody again and this time the patient may die. It will be interesting to watch. A nice big bounce is expected going forward but the descending triangle negativity keeps sneaking around in the bushes.

Note Added Sunday, 1/12/20: APRN drops to 5.35 losing -13% last week. The descending triangle maintains negativity. Watch the 5.20 level for APRN which may place the bottom. Blue Apron, that continues to be a bloody apron. APRN is down for 11 straight days. Daily chart may need to bounce at these lower levels a few days before starting back up. APRN is involved in the courts so maybe the analysts have the inside skinny on the way the legal stuff is going.

Note Added Tuesday Morning, 1/14/20, at 8:00 AM EST: Blue Apron is bludgeoned down to 5.04. Investors have lost all confidence in the ticker and the descending triangle won the game. Price adjusts to the new ugly. The door is open to 4.8, so after a few days, due to the whoosh lower, it will be a speculative buy from the 4.8-5.1 range. The news that sunk the ship this week is that Blue Apron may be running out of cash. They will have to ax folks and try to become more efficient. If price goes sub 4.7, it may end up heading towards bankruptcy.