- Divergence on MFI & RSI. Just a miss in ER or market correction and we can see 140sh level?
Comment:
Special thanks to my friend @avasreader for putting up this chart.
Comment:
Here is my intake why I am bearish on AAPL:
1. ELLIOT WAVE: We are currently in Wave 5
After wave 5, we see pull back. This is just like text book thing.
2. Fib levels, both Fib retracement and Fib Speed resistance, show that 140-150 area is 61%sh level. If we see pullback, then this is hard stop or bottom. We might see as low as 125 if there is a major correction in market.
3. MFI, whenever MFI gets overbought on Monthly, AAPL falls. This time MFI got overbought, but AAPL went higher, which meant it created a divergence. Divergence is very harsh. So, definitely, AAPL is poised for correction.
4. RSI - again if you see, RSI is also creating a mini divergence. But it's also overbought. Which means, we are ready for correction. Just a bad news .. .or ER miss or any fundamental news will trigger the fall.
1. ELLIOT WAVE: We are currently in Wave 5
After wave 5, we see pull back. This is just like text book thing.
2. Fib levels, both Fib retracement and Fib Speed resistance, show that 140-150 area is 61%sh level. If we see pullback, then this is hard stop or bottom. We might see as low as 125 if there is a major correction in market.
3. MFI, whenever MFI gets overbought on Monthly, AAPL falls. This time MFI got overbought, but AAPL went higher, which meant it created a divergence. Divergence is very harsh. So, definitely, AAPL is poised for correction.
4. RSI - again if you see, RSI is also creating a mini divergence. But it's also overbought. Which means, we are ready for correction. Just a bad news .. .or ER miss or any fundamental news will trigger the fall.