AAPL Apple Weekly Chart; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation; Price Extended

Apple's for sap's. Let's see, what is the Wall Street forecasts for AAPL? Whoa, doggie, as Jed would say, look at that. Everybody and his brother are long Apple with quintuple leverage. If anyone dares to lob a negative syllable at AAPL, they will feel the wrath of the trading community. Blasphemy! Apple stock is guaranteed to go up forever by decree!

AAPL is garbage. It is topped out on the weekly with neggie d. The chart is plain as the nose on your face. The RSI, stochastics and money flow are at or coming off overbot levels agreeable to a pullback. The rising wedge is a bearish pattern and the collapses from these wedges can be quite spectacular. The red lines show negative divergence across all indicators as price makes the new high. She's cooked. Stick a fork in it.

Watch to see AAPL fail below that lower trend line of the wedge which would portend negative stuff ahead. Price tagged the upper band so a move to the middle band, the 20-week MA, at 120 is on the table and the lower band at 104. The bands squeezed in tight, and price was lifting until the last week or so, and the expectation would be for a down move from here, a multi-week down move.

Price is extended above its moving averages requiring a mean reversion lower. All this stuff is bearish; there is nothing redeeming on the chart. The ADX is at 27 which is not a strong trend signal for the rally. The pink box with the ADX above 28-29 shows the strong trend which ended with the last top in September. The new price highs are fluff, or froth, due to euphoria and fiscal and monetary stimulus promises.

The Aroon shows the green line overbot and red line at zero oversold both are indicating maximum bullish euphoria for Apple stock. The party is in full swing, look, there goes the conga line led by CEO Cook. Everyone is happy long and feeling fine and believing the party will never end. What do you think? Are there bubbles in the Fed wine as Don would sing? The AAPL weekly chart is cooked as described so multiple weeks of down are expected and it is likely it will drag down the broad stock market since it is such a key component.

Looking at the AAPL monthly chart, it is in neggie d as well although the MACD line is long and strong. This would hint that a pullback will occur for a month, then a month recover back to the current highs when the MACD will go neggie d and call the top on the monthly basis. However, the MACD is in the stratosphere so a move down from here forward is not out of the question. In other words, the long-term multi-month, and perhaps several-year top, is in now as per the weekly chart above. This is the case or Apple will top-out on the long-term basis in a month or so which would be the top for stocks. There is a high likelihood that this is the long-term top right now for the stock market.

Keystone does not hold a position in Sapple right now. Let's look at the shorter term charts to see what the story is. The daily tops-out exactly like the weekly. The top was 12/29/20 at 138.79 (keep an eye on this number). The daily chart has no reason to go back up nor does the weekly so the weekly rout should be on now. The AAPL 2-hour chart is being cagey stumbling sideways. The approach on AAPL would be shorting all rallies over the next couple weeks and it should be trending lower over the next month to 105. Apple is trading flatter than a newlywed's soufflé in the pre-market. 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.