Another bounce and rejection then another leg down.
Apple is sitting on a very large support zone at $120 and is also locked in a down trending channel.
We have been trending down for a little bit now and are in need of a breather. There is room to bounce up to the top of the channel, and coincidently, a lot of the lower timeframe moving averages. This move up is also marked with divergences on the MACD and RSI. A small bounce up to the $125 area would land us smack dab on the 100 Day EMA and the upper line of our down trending channel. This would then mark our next lower high.
This will also give us the break we need to build momentum to the downside and break through this $120 support level as the channel and support converge. Momentum on the higher timeframes is starting to roll over, hence the overall downtrend we have seen as of late.
So for now I am expecting a bounce over the next couple of days, but I fully believe there is a lot more room below than above at the moment. Larger time frames show just how top heavy we are, and the euphoria is starting to leave the market.
I am long for the next day or two, but I am overall bearish as of late for any longer plays.
We have been trending down for a little bit now and are in need of a breather. There is room to bounce up to the top of the channel, and coincidently, a lot of the lower timeframe moving averages. This move up is also marked with divergences on the MACD and RSI. A small bounce up to the $125 area would land us smack dab on the 100 Day EMA and the upper line of our down trending channel. This would then mark our next lower high.
This will also give us the break we need to build momentum to the downside and break through this $120 support level as the channel and support converge. Momentum on the higher timeframes is starting to roll over, hence the overall downtrend we have seen as of late.
So for now I am expecting a bounce over the next couple of days, but I fully believe there is a lot more room below than above at the moment. Larger time frames show just how top heavy we are, and the euphoria is starting to leave the market.
I am long for the next day or two, but I am overall bearish as of late for any longer plays.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.