AAPL's bearish situation has worsened considerably recently as it tested its 200 day moving average and the upper line of its one year declining channel a week ago and was rejected by both simultaneously. Since then AAPL has traded lower for five days giving confirmation of the rejection as can be seen in the two upper daily charts shown below.
Looking next at the two lower charts which are weekly bars. The chart on the left shows the two moving averages that started the big up leg in AAPL with the red crossing above the green back in November of 2013 and then it shows the end of the run with the red crossing down through the green a couple of months ago. Since that recent down cross AAPL's price has been climbing as the make the stock do the opposite algo kicked in. Now, however, we have a situation where the smaller red moving average is up under the larger green moving average whereby if AAPL goes a little higher again such as another test of the 200 moving average and the upper channel line in a new weekly bar and then stops, they will have inadvertently created a powerful push down situation as the chart could start showing the red moving average being deflected or forced downward by the larger green moving average.
Not to add insult to injury but AAPL printed a weekly shooting star candle this past week as shown in the bottom right corner chart. Barring a major intervention, AAPL could go a lot lower.
Not to add insult to injury but AAPL printed a weekly shooting star candle this past week as shown in the bottom right corner chart. Barring a major intervention, AAPL could go a lot lower.
Trade well my friends
Alan
