Apple Stock Chart Analysis Follow Up
Last week after introducing the Relative Strength Index (RSI) and MACD as forms of technical analysis, I put up a stock chart of Apple for us all to analyze. Well, a week and a day later it is time for a followup, let’s see what we have going for us today:
Stock Chart of Apple
(You can find the original chart here)
Technical Chart Analysis
What I want to point out as the main difference between this chart and last weeks is in the MACD which is at the bottom. I called for a bearish week this week IF infact a bearish crossover occured, but as we can see the 12/26 did not cross below, but simply bounced off the 9-day EMA.
The market had a rough day today with the NASDAQ down nearly 1%, but surprisingly we can see that Apple held up and actually closed up yet again today. The negative divergence is still relevant with the RSI at the top, and I look forward to seeing how that ends up panning out for the stock.
Another factor to take into consideration now is the spread between the 50 day moving average and the stock price which is now above $120. Typically the larger the gap between the 50 and the stock the higher the probability for a atleast a short term price correction.
One last note to point out, anyone see anything familiar here with this chart? Apple has formed an ascending channel!!! Conveniently enough that I just wrote about them on Monday, and now we get to see one in action.
Blain, what are your thoughts on the bearish price/macd divergence of the nasdaq? Also, the vix seems to be breaking out of its trading range.
I personally find it quite interesting. The sell off today was all inflation worry related and volume was lower than yesterday, so I don’t see much to worry about yet. As for the VIX, can you see that at stockcharts.com? have never used it much but exploring it now
I use bigcharts.com, and use the ticker: VIX.
Hey Blain,
To answer your question, yes I use technical analysis, I just usually use it for longer time frames. I’ve probably been studying/using tech analysis for about a year now.
FT
How does this account for the volatility APPL may have due to the iPhone release. It seems like every other article says it’s going to be a HUGE seller or a total flop.
I agree, the iPhone has caused a lot of stir. In the end regardless of the news the chart’s indicators should still prove effective at predicting future price movements. Whether it be a big earnings release, or FDA approval on a drug, or in this case a new product, for some reason stocks always seem to fall back into a well known pattern.