TradingView
Huntz
Apr 17, 2022 12:37 PM

AAPL Huge Bearish Divergence Since Feb 2020 

Apple Inc.NASDAQ

Description

A huge bearish divergence that started in Feb 2020 might be indicating a pullback is coming.

Historically speaking, all the bearish divergences in the past have usually signalled tops and resulted in large drawdowns.
Comments
SpyMasterTrades
Agreed. Here are more facts to support your claim: (1) There is a divergence in volume to price action on the yearly chart (substantially decreasing volume, despite substantially increasing prices). (2) There has been a bearish crossover in 2022 on the yearly MACD (though this is premature because 2022 hasn't closed yet). (2) AAPL closed 2021 with a yearly RSI at nearly 97 (the most overbought it has ever been on a yearly close). (4) Elliot Wave and Fibonacci levels on the monthly chart suggest APPL's price may have peaked in January 2022 (though this is not a very reliable signal). Whereas on the flipside, the monthly chart looks quite neutral and tech stocks in general look poised to recover after their months' long sell off. I would not be surprised at all if AAPL melts up further. Typically, the stock market makes its fastest move upwards right after the yield curve inverts (this recently occurred) because markets stop pricing in further monetary tightening. Then prices fall dramatically right before a recession ensues. So my opinion is that AAPL will reach its peak right after when the Fed says its monetary tightening is working and the market begins to melt up before a recession.
More