Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Sunday, February 10, 2013

Sunday Night Focus: AAPL

Stock Market Technical Analysis Blog

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In tonight's blog I would like to focus on the developing situation in AAPL as it is in the early stages of a potential turn back up.  
  • Chart 1 above - the monthly bars with a pair of standard small EMA lines shows that they are steadily constructing a gradual line bounce situation.  
  • Chart 2 the weekly bars with a larger set of EMA lines shows they are also working a gradual line turn up on the weekly view.  
  • Chart 3 shows the downtrend channel since AAPL's peak where a breakout is possible within a couple of days.  Also, we are seeing an ascending wedge lift that started a couple of days ago.
  • Chart 4 - the long term trendline charts of AAPL shows that if AAPL breaks out of its downtrend channel in chart 3 it will immediately reenter its long term red ascension channel and also the larger blue slightly downhill channel.  
Historically, any time a stock breaks out of a sustained downhill channel and it's positioned where it can immediately enter one or even better two major channels above it right away, there is normally a huge run up in the stock triggered.  Granted they have to continue working the monthly and weekly line push ups shown in charts 1 and 2 but with the gradualness of the turn they are constructing in each pair, if they follow thru just a little more to break AAPL out of the chart 3 downhill channel they will likely have succeeded in a historical turning point for AAPL.  They still have a little more to go but it's getting close.

Trade well my friends, 
May the VIX be with you