Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Friday, March 25, 2016

AAPL Pulls Back at Major Resistance

Taking a look first at the lower chart below, a 10 year weekly bar chart of AAPL, we can see that AAPL's year-wide head and shoulders pattern on top of its upper red channel line was triggered a few months ago taking AAPL back down into its large red channel.  AAPL has now risen back to the neckline from which it dropped and printed a shooting star weekly candle as it touched it this past week.  This week's pullback qualifies as a failed backtest of its red upper channel line and also as a failed backtest of the year-wide head and shoulders neckline plus additionally, a failed backtest of the down cross of its benchmark moving averages (shown in the top left chart).

Next, taking a look at the top left chart, we see two large benchmark moving averages that have taken AAPL up and down throughout the years.  The beginning of the up leg is visible in the chart with the red crossing above the green back in the Fall of 2013.  Looking at the right side of the chart, we can see that four weeks ago the red moving average down crossed through the larger green moving average signalling the end of its bull run.  The candles chart (top right) shows the weekly shooting star candle that printed this past week.

It will take a major intervention by the Fed on the broad market to help AAPL out of the situation it is currently in.

Trade well my friends


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