Don't Ignore This Chart!

Apple Shows Positive Divergence on 60 Minute Chart

Tom Bowley

Tom Bowley

Chief Market Strategist, EarningsBeats.com

Apple (AAPL) is breaking down beneath its November low and on the surface appears to be a broken stock, but its intraday 60 minute chart is telling a much different story.  Given the slowing volume this afternoon and near test of Wednesday's pre-Fed low, AAPL's turn higher in its hourly MACD has me hopeful that it's close to a short-term bottom.  Perhaps it's already been reached.  In addition to the slowing selling momentum, AAPL's RSI is close to 30 and that oversold indication has proven to be a solid entry point in the past few months as highlighted by the black shaded circles below:


Relative to the S&P 500, AAPL has clearly been laggard, but the combination of oversold RSI, a positive divergence and the more favorable seasonal period from December 16 through December 31 could be enough to turn the tide here.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More