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  • keybotthequant keybotthequant Mar 2, 2012 7:28 AM Flag

    AAPL 10-Minute Chart Sideways Symmetrical Triangle Negative Divergence

    The AAPL 10-minute chart has a lot going on technically over the last couple days. Each candle represents 10 minutes of trading time, thus, for a 6 1/2 hour trading day, each day contains 39 candles. On Wednesay morning, note the gap up opening which has now placed AAPL on an island that formed at 537 and higher. Therefore, when price pulls back down, watch for a potential island reversal where price drops back thru the 535-537 gap and prints a 534 handle and lower.

    Even if an island reversal does not occur the gap at 535-537 is a powerful magnet moving forward. Note the black channel over the last two days with price moving thru 537-548. Note the tighter blue channel at 540-545. Use these upper and lower boundaries to gauge whether or Apple bulls, or bears, are winning moving forward. Note that price is at the top rail of the blue channel now so pay close attention at the open today. The pink line shows that price is matching the prior high but note the negative divergence across all indicators indicating a slap down of price on tap, but for these shorter term minute charts, the behavior can drastically change overnight. The closing bell yesterday saved price from drifting lower.

    When price spiked two days ago the volume participation was at a peak. Note the spike at yesterday's open placed a higher high at 548 but less buyers show up, thus, the price dropped in quick order. Perhaps the bigger fool theory is running out of bigger fools? The neon green sideways symmetrical triangle shows a verical side of about 11 or 12 points. Thus, whichever way price breaks out of the triangle, the move should add a dozen ticks. Note that price poked up and out of the triangle in the last half hour of trading yesterday. A target would then be 543 + 12 = 555, triple nickels. But, the sideways triangles exhibit fake out moves often, where the intial move in one direction leads to price moving back into the triangle and out the other side. The pink divergence hints that this may be on tap.

    The downside target should price decide to move back into the triangle and drop out the bottom side would be 543 - 12 = 531. Note the sturdy support at 532. The indicators reinforce the sideways symmetrical theme as they move sideways and are now tightening to decide on a direction. Projection is for AAPL to pull back as described in the previous daily chart.

    For AAPL chart use search box above for keystone speculator.

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