If you’re fueled by high expectations of Apple stock, Hawkeye is here to deflate the Apple-hype balloon.
While the iPhone maker has seldom reported negative figures in a decade, this week, Apple revealed typical congestion and a pause in downtrend.
For there to be a new weekly uptrend, the stock would have to break above $466. Refer to the following chart for the continued discussion:
On this particular day, the daily shows declining volume which translates to stopping volume in the existing weekly and monthly downtrend.
Also, the daily trend dot is rolling over showing lack of momentum.
The weekly trend does not show advancing volume, therefore negating a probable uptrend.
The monthly chart shows narrow bars on low volume; this normally indicates accumulation which will manifest on the faster timeframes as it develops.
In conclusion, there is too much risk to take a new long till increased buying volume occurs on the weekly chart.
Wait for a low risk entry when the daily and weekly indicate a new uptrend or short when the daily resumes in the direction of the weekly and monthly trend, both low-risk entries.