APPLE is not only a popular stock to watch and trade but also a leader in the financial markets and traders should always look at its behavior in order to gain some glimpses on what the future can hold. As I have been saying in Stocktwits and Twitter the past week while SPX was testing 1930, the market cannot go down while APPLE is positive and not falling as well. The market bounced towards 2020 after the FOMC meeting but the daily candles in equity indices show some reversal signs.
Now taking a look at the APPLE share price chart on the weekly basis we observe price has broken the upward sloping trend line and bounced back up to back test the broken trend line. Why should bulls be cautious? Because a price rejection at current levels will most probably push price back below $100.
APPLE has bounced off the 50% Fibonacci retracement and has hit the broken trend line from below. Price is still inside the cloud implying that trend is neutral. A rejection here will be a bearish sign and will increase the chances of price breaking below the cloud again.
Taking a closer look in the 60 minute chart the upward move in APPLE share price is not . The overlapping price structure of the rise tells me that the bounce is corrective and that the downside is not over yet. In the short-term price is testing the upward sloping trend line support connecting the recent lows. Bulls need to be very cautious as price still remains below the 118$ resistance. Bulls need to push above this level. On the other hand bears need to break below 113$ and 107$. As I have said several times I’m short since 112.25$ targeting new lows towards the 61.8% Fibonacci retracement.
Thank you for taking the time to catch up on my thinking.