Thursday, 21 September 2017

Apple (AAPL) Stock Chart on the Verge of Breaking Down ?

Apple share has done some medium term dips from time to time (in the shape of Great Dipper (that flips along the vertical axis)).


The Great Dipper Constellation
The Great Dipper Constellation


The chart below shows its last 2 of such dips. Are we expecting the start of the next dip? Such dip provides great buying (or shorting) opportunity.

AAPL weekly stock chart from 2012 to 2017
AAPL weekly stock chart from 2012 to 2017
(Click chart to enlarge)


Apple share have been showing bearish divergences in all 3 technical indicators since Feb 2017 (see chart below). Would this divergence finally play out to cause the share to start its next dip? The last time this happened, it broke down from the 14-month rising channel (marked by light purple colour) that sustained from Apr 2014 to Jun 2015.

If we're breaking down from the current 12-month rising channel that sustained from Oct 2016 to Sep 2017, the technical argument would be stronger for the start of such great dip.

Will keep an eye on price action and let it, and it alone, to decide the Great Dipper thesis.


Of course, you can have the scenario where the prices break down from this rising channel, but then comes back into the channel, and only to form double or trip tops (the handle of the Great Dipper) like it did the last time. Likewise, prices could go up a little bit more before breaking down from this rising channel. Will see.


AAPL daily stock chart from 2016 to 2017
AAPL daily stock chart from 2016 to 2017
(Click chart to enlarge)