Apple showing Negative Divergence

We noted Apple Computer is showing negative divergence between the stock trading and MACD. We love the fundamentals, but are a bit concerned about the Technicals. What is the groups thought?

Quote:
Originally Posted by MrktTimingAcdmy View Post
We noted Apple Computer is showing negative divergence between the stock trading and MACD. We love the fundamentals, but are a bit concerned about the Technicals. What is the groups thought?
Negative divergences always catch my eye as well, However, I personally feel that MACD negative divergence is not always indicative a coming trend reversal. It may be during a consolidation period of the price range and sometimes can foreshadow a new rally about to happen. Especially if the PPS never drops below the established support.

If Apple drops and bounces off about the 300-305 area then it holds it's support. By that time the MACD will pretty much be at bottom and ready to curve back up. Or better yet, if it drops to 310 and bounces then we've got a long thin ascending triangle pattern of sorts and it retains the upward slant on the bottom trend line established since the drop at the beginning of October.

The MACD seems to be actually leveling off somewhat over this last month and a half which I find to indicate a possible break in that negative divergence. The black MACD line is about to cross down over the red signal line but it could be a very shallow crossing if at all. The other thing to watch imo is volume, which seems to be fairly steady.

If you look at AA (Alcoa), it had a negative divergence from mid Oct thru the first of Dec. It all of a sudden seems to be possibly turning up. During that entire time Alcoa was in an upward channel and appears to be still in. In fact the last drop was a higher low and appears to be poised for a possible breakout of that channel to the upside if it holds above the 10 dma.

We'll see what happens with Apple. If the the MACD continues to level out as it' seems to be doing and starts up like AA has, then should be ok. If it drops some more to the 0 line at the histogram then there's concern for sure.
These are just my opinions, I could end up being totally wrong of course, lol. This stuff is never predictable.

I will say, I don't like the way the Chaikin money flow histogram has been on a downward slant either but I've noticed it never dips too far into the low side on Apple. If it holds I'm hoping it means we're just in a short consolidation and will see things start back up. It was bobbing below the line during the last sideways consolidation period Apple had from May thru Sept. Then everything looked up and the PPS started rising to it's current levels.

Quote:
Originally Posted by MrktTimingAcdmy View Post
We noted Apple Computer is showing negative divergence between the stock trading and MACD. We love the fundamentals, but are a bit concerned about the Technicals. What is the groups thought?
Please take a minute to read the http://www.stockmarketcats.com/f5/po...ines-1696.html.

Thanks!
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Got it. Thanks for the heads up on the rules and regs. I'm a Newbie to the forum...
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Lisa Virkus
Founder
The Market Timing Academy