Apple Inc. (NASDAQ:AAPL) Wedge Pattern Could Signal Long-Term Top
Dow component Apple Inc., has struggled in recent weeks, losing ground at a rapid pace due to growing fears that China will target the tech giant in a trade war. Shareholders have taken note, selling the stock aggressively since mid-May, while the early June thrust to an all-time high set off a number of bearish volume divergences. None of this bodes well for the Cupertino, California-based icon or major indices in which the stock is a heavily weighted component.
Apple holds the 13th highest weighting in the Nasdaq-100. The tech-heavy index rallied above the March high on June 13, attracting a wave of trend followers, but the rally stalled a week later and has trapped those buyers in a failed breakout. A similar reversal in March dumped the index more than 850 points in less than three weeks, indicating that the current decline could find its way to 6,500.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 192.90.
The projected lower bound is: 178.41.
The projected closing price is: 185.65.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with APPLE INC). It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 54.6122. This is not an overbought or oversold reading. The last signal was a sell 13 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 47.07. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 15 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -56. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 13 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 1.340 at 185.500. Volume was 43% below average (neutral) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume___
184.100 186.210 183.800 185.500 17,365,236
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 185.64 183.60 172.40
Volatility: 17 26 26
Volume: 28,620,636 28,615,974 30,942,456
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
APPLE INC is currently 7.6% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 7 periods.