Video: Divergence or Three Push in Apple AAPL

Oct 3, 2009: 5:24 PM CST

Last week, I discussed Apple’s (AAPL) Daily Chart and noted that “Apple was close to all-time highs” (weekly and daily view) but that there was a price level overhead to overcome.

This weekend, Adam Hewison released a video continuing his “divergence lessons” entitled “Is a Divergence Building in Apple?

Hewison writes, “In this short four minute video, I’ll explain some of the possible negative divergences that are building for this market.

Divergences do not mean that Apple is going to collapse, as the major trend in the stock remains firmly in the positive camp. However, it could indicate that Apple is at a highpoint for the time being.”

In addition to Adam’s take on Apple (and his use of the standard MACD indicator), I wanted to note that it’s possible that a “Three Push” reversal pattern could also be forming in Apple.

The “Three Push” pattern reflects a triple negative momentum divergence (not quite seen in the standard MACD) that appears on three symmetrical swings to new highs.

In both cases, a divergence or a Three Push, these are bearish omens for the market.

There is prior price resistance at the $190 level, and should price rise to $202, then that would mark a new high and invalidation for the aforementioned divergences.

Let’s keep watching Apple closely for signs of continuation… or of the growing case for a possible price reversal/retracement.

Comments Off on Video: Divergence or Three Push in Apple AAPL

Comments are closed.