Well, we learned Friday that AAPL is cutting back production of its iphone due to slowing demand. I guess AAPL forgot to tell us that when investors were buying the channel breakout a couple of days ago. Looking back, it almost appears that someone had a powerful algo forcing AAPL to break out of the channel.
Looking at the top left chart above, we see where AAPL broke above its 200 day moving average and then retreated back below it with the news. In the top right chart we see how AAPL broke out of its steep declining channel but then fell back into it with the news. Notice the two prior false breakouts marked with arrows and how AAPL is punished severely immediately after having a false breakout.
In the far right daily chart, we see a bearish RSI divergence and lower in that chart a MACD sell signal has appeared. Next, in the candles chart we see that a second bearish shooting candle was printed in the weekly candles for this past week confirming the previous week's shooting star reversal candle. Lastly, the large bottom left chart, we see the weekly moving averages I have focused on in several articles as they continue to develop a bearish setup where the smaller red moving average finds itself up under the larger green moving average and is turned back down or deflected downward by the green moving average producing a power flush downward quite similar to the MACD sell signal in the day chart to the right.
The only thing that might save AAPL here is the continued nightly futures interventions by the prop the market coalition and their tractor program that has been strapped on the market this past week to keep it from selling any whatsoever from the high peak it reached from the short squeeze based upon the now known to be a false report of a Russian / Saudi Arabia oil deal.
Trade well my friends
Alan
