AAPL Apple Daily Chart shows Death Cross and Positive Divergence Setting Up
The Apple daily chart shows the 50-day MA crossing down thru the 200-day MA to announce the Death Cross (dark blue square). This is of no real importance except as a weekly type indicator to signal that Apple weakness should continue on a weekly basis moving forward. So, in a nutshell, do not pay much attention to the Golden Crosses (50 crosses above 200) and Death Crosses (50 crosses below 200). Now, looking at some technical's that do matter, the neon blue lines show a downward-sloping channel well established. Two Head and shoulders patterns already played out to acceptable endings. First, the black H&S, head at 705, neck at 650-660, 600-610 which was achieved. The pink H&S has a head at 705, neck line at 620, so the downside target is 530-ish which was achieved.
The brown lines in August-September show the riding wedge and negative divergence spankdown that was forecast at that time. On the weekly chart the other day (type 'AAPL' in the search box above to bring up the previous Apple chart/s), a massive H&S is forming with neckline at 520. Price is at 520 now. If a catastrophic failure occurs for Apple, it would occur here and now at 520. If 520 fails, 480 would be on deck and likely 440. The neon green lines show that price has now at least provided a semi-acceptable matching or lower low as compared to November's low. Thus, a look at the indicators shows positive divergence across the board (neon green lines). However, in the couple day time frame, the indicators are weak so price may want to tease a bit lower into the neon green circle to place the near-term bottom. Pay attention ot the prior intraday low at 515-ish. As price comes down, monitor the positive divergence shown by the neon green lines to verify that it remains in place, if even one of the indicators lose the upwards positive slope shown, price will still bounce, but it will come back down again.
Projection is a positive divergence bounce to occur for AAPL this week from the 515-525 area. Any price move under 520 should be viewed as highly dangerous for Apple. If the prior low at 515 holds and price recovers, no great shakes. If the 515-ish fails and price starts to slip and slide away, AAPL stock would be in serious trouble and should be avoided since price will probably drop into the 400's moving forward.
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