Saturday, June 04, 2011

Apple Inc.(AAPL) - Showing Relative Strength

Above is a 60 minute chart of Apple Inc. (AAPL) and in the lower panel is a 60 minute chart of the S&P500. As you can see both the S&P and AAPL have been moving together making highs and lows at approximately the same time.

What interests me about the above chart is that we are now seeing AAPL  begin to diverge from what the S&P is doing. Over the past few days the S&P as well as the rest of the major indices have been selling off taking out last month's lows but AAPL is making a higher low. This is called a bullish divergence and in my opinion AAPL is poised to rally sharply  if we can get a bounce in the overall market.

On Friday Apple Inc. (AAPL) closed at 343.31 down 2.66 from Thursday's close.

No comments:


This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
Technorati Profile Finance Blogs - Blog Top Sites