Stock quotes in this article: COST, AAPL
Let’s check out the AAPL charts and what this might mean for the broader averages.
In the AAPL daily bar chart below, we can see that stocks rose steadily from their June low. Prices traded upwards in a tighter, tighter pattern – I think, a bullish wedge. Volume has decreased from early July and this is typical of this pattern.
The daily On-Balance-Volume (OBV) line has moved up from mid-June. This is a positive but only slightly outperformed the high of late March.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it seems that the two moving averages that make up the oscillator are starting to narrow. This is an early warning of a possible reversal. Speaking of reversals, the candlestick pattern on Thursday could be a spinning top or a doji which could be part of a bullish reversal pattern.
In the AAPL weekly candlestick chart, below, we see a mixed picture. Prices have risen and are now trading above the 40-week moving average line.
Weekly OBV line shows slight improvement from June to July. The MACD fluctuation has crossed to the upside for a short covering buy signal.
In the AAPL dot chart and daily chart below, we can see that the stock has reached the $167 target price. Hitting the target price can motivate tech oriented traders to become profit taking. The volume in the price bars (left scale) indicates that there may be significant resistance.
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