Apple Stalling at the 200 Day Moving Average

By | April 11, 2016

Apple (AAPL) shares have been making a series of higher highs and higher lows since breaking above their 50 day moving average at the beginning of March, but are stalling this month at their 200 day moving average. The recent price action around the average can be seen forming several high wick candles which reflect an inability of the stock to advance past this key resistance and make another swing high.

100004.APPLchart

The stochastic oscillator is crossing out of its overbought range and has tracked down towards its centerline. Moving average convergence/divergence is making a bearish crossover for the first time since its November 2015 high. Positive price momentum is fading along with positive money flow. The accumulation/distribution line has crossed below its 21 period signal average, and Chaikin money flow appears prepared to enter negative territory. A break below the $108.00 level would end the trend of higher lows and signal a swing failure.

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