Apple is going to go down again, only question is by how much? I would say at least 10%, at least!!
Here is the weekly chart
You can see how Apple failed at the all time high and the candlestick pattern is obvious, it can't get more bearish than that. We have a bearish engulfing which is bearish enough on it's own, but the next candlestick is a no demand bar, used in volume spread analysis (VSA by Tom Williams). Value stands at 90$, but with the current pattern I would be surprised to see Apple fall only to 90$, but that's only my guess, and guessing doesn't make you money.
If we go to the daily, we have almost the same candle pattern. The no demand bar has huge volume, 3 times larger than the average after the stock split. The long day on 03.09.2014 has big volume too, and that was the first warning signal. The confirmation came yesterday.
MACD doesn't have a particular pattern, but the momentum has been fading for some time. This trade is based more on volume and price action.
I will close out on the opening what I have left on Apple, and I'll be looking to go short. I believe this is a wonderful opportunity.
Here is the weekly chart
If we go to the daily, we have almost the same candle pattern. The no demand bar has huge volume, 3 times larger than the average after the stock split. The long day on 03.09.2014 has big volume too, and that was the first warning signal. The confirmation came yesterday.
MACD doesn't have a particular pattern, but the momentum has been fading for some time. This trade is based more on volume and price action.
I will close out on the opening what I have left on Apple, and I'll be looking to go short. I believe this is a wonderful opportunity.