I am a huge fan of Apple and their business model, but this is technical analysis and the "red" flags are screaming that it is time for a sharp correction.
Indicators:
I. Red trend lines signaling future decline ( trend lines are from the Knoxville Divergence indicator and help foresee growing divergence often times ahead of MACD and traditional sell signals
II. High RSi shows that Apple is extremely overbought
III. Visible range shows the prime trading activity price is 127.14
IV. Divergence+ shows a red cloud above the most recent candles indicating high levels of bearish divergence
Feedback:
Let me know your thoughts in the comments below, this analysis has been used previously and is extremely accurate.
Previous analysis linked below
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Please view my latest analysis that also supports this claim that Apple will have a higher low before hitting new highs into earnings
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Maybe I'll use the profits from this $139 put & then buy calls after. This is a too good to be true scenario but if it happens, I will be sharing the joy with everyone in the form of cheers.
He's back. Nice to see your post. Agreed because there has been a serious climb to the top in the last 2 weeks. In addition to the fundamentals mentioned above, another way that I look for behavior, is that I always compare AMZN next to AAPL and when AMZN (which similar to AAPL has climbed significantly in the last 2 weeks) is now settling and taking a breather, I would say AAPL holders are bound to take some profits at this point in time as well and AAPPL may go sideways before it tries to climb again. I also think it's the usual AAPL behavior where it builds up toward the earnings call in 2 weeks, and right after earnings it goes down again ... I'm excited to see AAPL back up in the $145 where it belongs but yes I believe there will be a dip before it goes into the $150+ range...
Myantman101
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@sipiceanu, Happy to hear your take! Great comparison ( AMZN to AAPL ) time will tell! Come back next Friday and press play :)
ceisho12
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@sipiceanu I don’t think the dip is coming anytime soon last year 3rd quarter earnings Apple went up 45% so that not true. And feel in September as correction. September and October are the worst months for trading
sipiceanu
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@ceisho12, I would say 'correction' is indeed a bit drastic but a 'pull back' makes sense in view of 15% upside on AAPL in the last 2 weeks. Best part about the Stock Mkt is no one has the answer but I love the ideas and seeing who ends up making the right predictions.
ceisho12
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@sipiceanu, considering apple has had a poor first half of the year I doubt it will come anytime soon it has been in the 120s to low 130s since last year hit 145 in February it went back down to the 120s. September a correction will come in September but as of now a small dip will happen but certainly rise 160+ some analysts are saying 200 but which would make Apple a 3 trillion market cap Apple is undervalued.
Myantman101
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@ceisho12 No doubt Apple could jump after earnings. Before earnings we should expect a dip.
@Myantman101, If it does dip it won't much of one, its coiling up it will rise, and then stagnate for a bit the earning will explodes, the first half of the year didn't really give it much in terms of gains but the third quarter is the big boom for Apple
jburgdorf394
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@ceisho12, What strike should I get a put option at?
Myantman101
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@jburgdorf394, Proceed with caution and use your own research, this chart is good research but I would look at other predictions and do your own technical analysis. Personally I have a very small position my put strike price is $139 and expires 7/23. Nothing is guaranteed, I do not even know if that strike price will be reached by then. My plan is to take a quick profit during the dip ( if there is one ) I am confident enough in my analysis to make this play and am expecting to make a big return. My reward is much higher that my risk. Feel free to message me and I can further explain my analysis.