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.
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