Looking at a 1 year chart of Apple, I see a beautiful uptrend in which many of us had some nice rides (including myself). If I look at the latest run -from the beginning of March- I see a (too) steep trend. The latest iPad hype contributes to that off course, well orchestrated by Apple itself.
It is I think however time to cool down, and looking at the chart, I made the following analysis :
- A green bar represents 10USD.
- As a rule of trading goes like “stocks are always attracted by the average”, it is time for AAPL to go lower.
- In only 2 instances (red circles) the stock went further up after a gap at 10 USD between the 50d MA and the stock price. But then also not for a longer period.
The RSI is also above 70 (overbought level), but that can stay a longer time above 70. I found this an interesting exercise to assess future direction of the stock.
It is time to give the iPad hype a rest for a while, or does Apple keep it alive ? International launch of the iPad is postponed with one month. Reason : due to the great success in the US, they first want to use the stock for the US.
- True ?
- Or is something wrong with it ?
- Are they lying and they have plenty of stock, but want to keep the hype alive ?
- Are they building in a Webcam ? (like the wePad ?)
- Are they adding Flash support ? (haha)
- None of the above, but as I am writing about it, Apple is happy because I keep the hype alive. 🙂