AAPL might be setting up for another failed break out pattern. For this pattern to play out, the stock needs to break out to the new all time highs in several weeks from now and then quickly reverse its advance. The previous AAPL’s 2 failed break out patterns happened in 2018 and 2012 and led to substantial drops in the stock’s price.
After breaking out mid October 2019, Nasdaq has been going straight up for almost 4 months. Despite its monumental run, the breadth indicators are not confirming these new highs. Given these bearish divergences, here’s the scenario I see potentially developing.
The advance/decline line (A/D) is a technical breadth indicator that plots the difference between the number of advancing and declining stocks on a daily basis. The indicator is cumulative, with a positive number being added to the prior number, or if the number is negative it is subtracted from the prior number.
Analyzing main indices’ price action for confirmations as well as bullish and bearish divergences helps me assess the ongoing market model signal’s strength as well as potential reversal odds. Let’s review the latest price action.
Investors dumped stocks and flocked to traditionally safer assets like gold and government bonds this week as worries grew that the coronavirus epidemic would crimp global growth. This week’s dynamics highlights investors’ struggle to assess the damage that the coronavirus epidemic will have on economic growth around the world as the sickness disrupts consumer spending, manufacturing and supply chains around the world.
Analyzing main indices’ price action for confirmations as well as bullish and bearish divergences helps me assess the ongoing market model signal’s strength as well as potential reversal odds. Let’s review the latest price action.
The biggest returns on Wall Street are usually achieved by trading high beta stocks. Institutional traders are often attracted to these securities, which ensures that there is plenty of liquidity that in turn leads to large intraday and swing trading moves.
U.S. stocks finished lower Thursday, after clawing back from steep late-morning losses, as investors struggled to find their footing amid uncertainty about the impact of China’s coronavirus epidemic.
The biggest returns on Wall Street are usually achieved by trading high beta stocks. Institutional traders are often attracted to these securities, which ensures that there is plenty of liquidity that in turn leads to large intraday and swing trading moves.
Analyzing main indices’ price action for confirmations as well as bullish and bearish divergences helps me assess the ongoing market model signal’s strength as well as potential reversal odds. Let’s review the latest price action.