Quick Update on Apple

October 29, 2013 (12:00 pm)

A quick update on Apple’s trading this morning. After a pop this morning, Apple has quickly retraced to the downside and is down $8 on the day (and $18 from today’s high).

Negative Divergence. We now have confirmed negative divergence on both the RSI and MACD. Shares have also broken down from a bearish rising wedge pattern.

AAPL Divergence

Bearish Engulfing Candle. We also have a bearish engulfing candle, with shares initially surpassing yesterday’s high before dropping below yesterday’s low price. This is a bearish reversal pattern. It is nearing its 10 DMA, which may provide near-term support. However, MACD has turned down on both the hourly and daily charts, which may portend a continuation of the pullback.

AAPL Bearish Engulfing