Apple Inc. (NASDAQ:AAPL) stock is positioned for a new high with positive divergence coming into form from on balance volume
Apple Inc.’s (NASDAQ:AAPL) stock is positioned for a new high as technical factors are falling into the appropriate places for a move to occur purely from a technical standpoint. Shares of AAPL have been slowly crawling back north for 23 days now after rebounding from the last low, periodically setting an occasional new high along the way. Now, AAPL is ripe for triggering another new high.
First, it should be noted exactly how resilient Apple’s stock can be. Take a look at Fig. 0 on the provided chart and that highlighted area is under negative divergence on both MACD and on balance volume in correlation to share price. Afterward shares lost their footing and broke south through support, which negative divergence does a remarkable job at throwing a red flag at that retrace is potentially on the horizon – and is usually correct.
What is the resiliency note all about one may inquire, it is that AAPL did not fall terribly far before rebounding and made a new high a few weeks later.
Over on Fig. 1 of the daily chart, MACD is enduring a typical case of consolidation since price volatility is so miserably low, yet on balance volume is more responsive as it pulls data from volume. This figure portrays positive divergence in correlation to share price, and signals that AAPL has technical support for setting a new high. It does not look like stoc is going to reach oversold before the week is over like it would prefer to do.