AAPL Apple Daily Chart Shows Falling Wege Pattern in Play
Lots of folks are watching Apple these days since, as Apple goes so goes the markets. The broad indexes, however, are showing resiliency with the world's largest market cap company losing steam. As the previous chart or two showed, an ongoing falling wedge pattern is in play. The daily chart clearly shows positive divergence in place (green lines) creating the two main bounces over the last two months. The action over the last few days takes on a sideways tone. The RSI is agreeable to a few more bucks of downside but overall, the daily chart is setting up for a more sustainable up move, at the least, a sideways to sideways up bias. But first, price may want to play inside the wedge a while longer. The thin green lines show a narrower falling wedge in play which would only forecast a low in the mid 490's. The main falling wedge shows a price of 475-485 at the bottom rail. If AAPL starts up from here, good luck to it. It appears best, however, to perhaps wait for the 475-495 print for a potential long entry.
The weekly chart is setting up with positive divergence as well, however, the MACD line wants to see another low after a bounce on the weekly basis. The projection is a move to the 475-495 zone over the coming days, pehaps a week (short four-day week next week), or two weeks, then a recovery move.
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