Stock Chart Analysis, Apple

Posted by Blain Reinkensmeyer on Tuesday May 29, 2007

Time for some group technical analysis of Apple (AAPL) based simply off of the two topics from today:

If you haven’t read those posts above yet, I would suggest doing so before taking a look at the chart below and making a prediction!

Stock Chart of Apple

Stock Chart of Apple

So first off using the Relative Strength Index (RSI) which is at the top, we can see that Apple has formed a Negative Divergence. This by itself is a bearish sign according to our prior reading.Below the chart is the MACD, which looks like it is showing a bearish crossover coming very soon. This is a bearish sign because the 12/26 difference line would then be below the 9-day EMA.

The Prediction

So, using what we learned today, I will say that if in fact a bearish crossover does occur this week, Apple may have a rough few weeks coming up. The negative divergence alone tells us that Apple may be ready for a price correction. More specifically, I predict Apple’s stock price will be lower than the current last of $113.59 at the end of next week if a MACD bearish crossover occurs.

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Comment by Justin
2007-05-29 14:27:18
Hi Blain, I think Apple will be below $110 at the end of next week.
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Comment by Blain
2007-05-30 01:40:58
I support this notion twisted
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Comment by Market Matador
2007-05-29 21:54:35
Hey there Blain! I see that you’ve just become kind of bearish on Apple’s stock and I’d like to share with you an interesting article I just wrote about. “On today’s episode of Mad Money with Jim Cramer, Jim recommended selling out of all but a quarter of positions in Apple (AAPL). Unfortunately for Jim, he may have completely missed the boat on this one, because AAPL is headed much higher.”
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Comment by Blain
2007-05-30 01:43:46
Haha, well LONG TERM it may be heading higher, but short term? Head for the hills! mrgreen You may not recall, but I have traded Apple once or twice around the block, and made some MAD MONEY off of it. I am convinced I am right on this one. And if I am wrong? well, Ill buy everyone a round of beers on me.
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Comment by Matt
2007-05-30 01:02:11
Blain, you are a machine! Jim Cramer called Apple a sell today on Mad Tv!
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Comment by Stock Junkie
2007-05-30 01:03:04
I say short term bearish, long term bullish. The iPhone launch will be big.
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Comment by mataspeed
2007-06-01 03:28:58
I agree, short term bearish. But one of my rules is not to trade bearish on an generally uptrend stock. cool
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Comment by Blain
2007-06-01 11:38:58
A very valid rule at that mataspeed, well said.
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Comment by drkick Subscribed to comments via email
2007-06-02 15:29:51
I think Apple will go down next week but marginally. There is such a buzz about Apple right now with the upcoming iPhone aka the Jesus phone, people, mainly small investors, are eagerly waiting for the stock to go down to get in the game. I predict the stock will go down but never under $115 and will finish next week at about current level $118-119. And, for all of us in long term, with what is coming ( iPhone, Leopard, Christmas…) it would be crazy to sell before…well.. let’s say January 2008.
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Comment by Blain
2007-06-02 20:51:05
I will do a follow up analysis on the stock this upcoming week to check out or technical indicators and see where we are at. The buzz has helped Apple substantially with this current uptrend. iPhone hype is nuts…
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Pingback by Apple Stock Chart Follow Up 3
2007-06-14 11:16:58
[…] Original Chart of Apple […]
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