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Article / 19 September 2017 at 12:13 GMT

Is Apple not leading the pack any more?

Technical Analyst / Saxo Bank
Denmark
  • Long-term habit of leading the pack higher seems to be finished
  • Apple has broken out of a rising wedge pattern
  • Short-term trend for the stock is bearish
  • Downtrend on the daily chart with lower lows and lower highs

Apple

 Everybody played follow the leader and it was fun while it lasted. Pic: Shutterstock

By Kim Cramer Larsson


Apple has led US indices to new highs for a long time but this practice now seems to be over. The recent highs in the S&P 500, DJI and even the Nasdaq have not been because of new highs in Apple. 

The all-time high that Apple recorded on the first day of September occurred while RSI and MACD indicated divergence and the price action has formed a rising wedge-like pattern (two blue rising trend lines) that it seems to have broken out of bearishly.

In the past couple of days the stock has tested the trend lines from beneath, only to be rejected, and technically Apple is in a downtrend on the daily chart with lower lows and lower highs. It will be interesting to see if the stock can break back above and back into the pattern during the next couple of days.
 
If not, expect the bears to try to close the gap from August. If they succeed then the 150 area would be the next support. For the bearish picture to be demolished a close above 164 is needed.   
 
Apple daily

Source: Saxo Bank

— Edited by Clare MacCarthy

Kim Cramer Larsson is a technical analyst at Saxo Bank
19 September
Andrew Perkins Andrew Perkins
HI Kim , would you like some feedback on the saxo pro software??
20 September
Kim Cramer Larsson Kim Cramer Larsson
Hi Andrew please contact your Account Manager
20 September
Andrew Perkins Andrew Perkins
Ok thanks for the reply
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