Apple: Bullish Trend To Continue Or Is A Double Top Forming?
Investing.com | May 04, 2015 12:12AM ET
Apple's (NASDAQ:AAPL) weekly chart is showing several bearish signals that may suggest profit-taking and a potential retracement to lower demand zones. Last week opened with a gap up, reaching February’s high around $133, just to form a bearish engulf a day later. Eventually the weekly candle closed down only 1% with high volume.
The stochastic and MACD indicators could be forming a bearish divergence, and for the former it may be the second divergence – the first formed between the peaks of November 2014 and February 2015.
Should the stock continue its retracement, buyers may be waiting for it around the demand zones of $105-$112 and $95-$101.
On the daily chart we can see a trend-line and a support zone that need to be broken to allow the price to move further down. The arrows in red suggest a potential move in case the trend-line and support zone are broken. But remember – so far the trend is very bullish, and further gains are more probable than losses.
Disclaimer: The information provided represents the author's own opinions and does not contain a recommendation for any particular security or investment. The author, as well as Investing.com editors who helped produce this article, may own positions in instruments mentioned. We encourage you to do your own due diligence.
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