Keystone does not know Applovin from Shinola but by the looks of the APP weekly chart, it is a piece of crap that has started to receive a neggie d spankdown. The multi-week pullback has started and price should next fall below the bottom rising wedge line. Rising wedges are bearish and the drop out of the wedge can be quite dramatic sometimes.
Applovin is a mobile technology stock involved in advertising or some such rot. It is just another tech company where the employees are all young men with short haircuts walking around in fleece vests that sport the company logo. In a slow economy, the first thing cut is the advertising budgets.
The blue line show a textbook diamond continuation pattern that no one noticed. It resolved with higher prices after it exited the diamond in July. When APP peaked in late September, the MACD was still long and strong. Price was kicked lower due to the negative divergence with the other chart indicators but the MACD had enough juice to help price recover for one more high on the weekly basis and voila, APP comes up again for the high last week, and the MACD goes neggie d joining all other indicators. She's cooked on the weekly basis. Stick a fork in it.
The money flow is also showing lower lows so this metric wants to see further weakness even if price is buoyed for a few days or week or so. Look how the volume deteriorated all year long.
Applovin, you will need some lovin' after you are taken to the shed out back behind the garage and beaten like a rented mule. The name always sounded odd because the memory is triggered with some kind of 'lovin' thing then you remember 'McLovin'. Nerdy McLovin is the hero. McLovin's two little screams during the scuffle in the kitchen are priceless.
The APP stock is referred to as unstoppable. According to the neggie d on the chart above, plain as the nose on your face, that would be an incorrect statement. APP is very stoppable and it has already started to receive its neggie d spankdown on the weekly basis. Run for your life especially if long and if you made a lot of money. If you entered it recently, get out because you will lose your shirt. Keystone is not long or short APP and has never played it; the only position to consider is short going forward for the next few weeks.
The APP daily chart went neggie d and that joins the negativity above to create the multi-week smack down expected going forward. Money flow, stochastics and the histogram are all making lower lows on the daily chart and the RSI and MACD line are about to follow suit that means a lot more downside ahead. This stock is a turd. If you remain in Applovin, you are the bagholder.
If you rode the stock from 50 to 700 or from 100 to 700, be happy and move on. It will be several weeks before it rights itself. Do not dilly-dally because price may take a wicked quick fall from that rising red wedge. Pretty and talented artist Jenny Lewis is about to get wicked. She is lying on her bed. Halleluiah. Red Bull & Hennessey. 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
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