Technical Update - Apple rebound seems to be over. Downtrend could soon resume
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Apple has formed a rising wedge like pattern and got rejected at resistance at 151.75. Heavy selling hit the stock and Apple could break bearish out the wedge indicating reversal of the uptrend.
If that scenario unfolds the support at 142.12 could be crucial. If Apple closes below down trend has confirmed and Apple could test June lows around 129.
For Apple to reverse this likely bearish scenario it needs to close above 151.75 for a move to around the 200 SMA.
On the weekly chart RSI is showing divergence (RSI values are rising whereas the price is making a new low) However, with the rejection at 151 sellers could regain control. If Apple closes this week below 145145.67 it has formed a Bearish Engulfing candle indicating a reversal of the short term rebound.
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