Apple – Double Trouble?

By | July 9, 2014

The weekly Apple (AAPL) chart shows shares currently testing their September 2012 high, at the same time the RSI and the Money Flow Index, a volume weighted relative strength measure, are in overbought conditions. Both these indicators were simultaneously overbought in March and September 2012, and significant pullbacks in the stock followed.
I use a 21 period moving average of the RSI as a signal line, and I’ll be watching for a bearish crossover, or a bearish weekly candle. Stay tuned.

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