Notice that depending on how you chart the Apple stock, you either have a rising wedge, or a new parallel chart going up. The steeper overall incline, has a concerning Relative Strength Index associated with it, which shows the higher stock prices over time, actually has a lot less volume behind it.
Keeping in mind Apple is most likely going to publish strong Q1 reports, we would expect some sort of correction in the meantime. Does this mean that the current upward progress out of the normal trendlines are a bull trap? Not necessarily, but it has closed high enough and with enough volume to create new lines to draw with.
I see a couple things happening here. The top of current trendline is being hit, along with the previous high. We pushed past a little bit, but we need a strong close for this to not bounce back down in the bottom trend channel. With normal variances, we expect to see some ups and downs within channel, so at least we know where the bottom will lie. If we break downwards, we now have support where it was previously resistance, and this will help keep Apple Stock price above that mark.
The declining RSI, as shown in the past, usually means there is a correction coming. These are not large corrections, but expect up to a moderate 38% drop from current upward pattern (NOT 38% drop of entire price of stock). New pattern developed at $90, when it bottomed out, and continued to $237 as the high currently. This could mean up to a $57 drop in price, over a long time period, and the stock would be completely stable. Hits of 20% to 38% are just minor profit takings, and are to be expected. I expect stock to keep increasing until just around $240-$250, and then we should see a correction occur. The correction can potentially bring the price down to $177-$185, or just $198-205
Keeping in mind Apple is most likely going to publish strong Q1 reports, we would expect some sort of correction in the meantime. Does this mean that the current upward progress out of the normal trendlines are a bull trap? Not necessarily, but it has closed high enough and with enough volume to create new lines to draw with.
I see a couple things happening here. The top of current trendline is being hit, along with the previous high. We pushed past a little bit, but we need a strong close for this to not bounce back down in the bottom trend channel. With normal variances, we expect to see some ups and downs within channel, so at least we know where the bottom will lie. If we break downwards, we now have support where it was previously resistance, and this will help keep Apple Stock price above that mark.
The declining RSI, as shown in the past, usually means there is a correction coming. These are not large corrections, but expect up to a moderate 38% drop from current upward pattern (NOT 38% drop of entire price of stock). New pattern developed at $90, when it bottomed out, and continued to $237 as the high currently. This could mean up to a $57 drop in price, over a long time period, and the stock would be completely stable. Hits of 20% to 38% are just minor profit takings, and are to be expected. I expect stock to keep increasing until just around $240-$250, and then we should see a correction occur. The correction can potentially bring the price down to $177-$185, or just $198-205