
I see a short-term negative character change taking place in both AAPL and GOOG. In the case of AAPL, I have made several comments to this effect in TeleChart Platinum chat over the past few days. This change of character appears most clearly on the hourly charts.
These two hourly charts of GOOG and AAPL have a 20-hour, a 50-hour and a 200-hour simple moving average running through price. Although I have chosen not to display my volume-weighted MACD indicator in its own pane, I have color-coded my price bars to reflect whether the indicator is bullish (green price bars) or bearish (red price bars). The center pane contains a 30-hour (front weighted) Time Segmented Volume (TSV) with a 25-hour moving average. In the bottom pane I have a Worden’s Stochastic displayed on a 60-hour period with some smoothing.
Both GOOG and AAPL display very similar patterns on an hourly chart. This is not only the case with price, but with TSV and the Stochastic, as well. Price moved down through the 20-hour moving average several days ago and the 50-hour was violated yesterday. Today’s attempt to get back up through the 50-hour moving average was unsuccessful. Note the persistent red (hourly) price bars over the past week signifying a negative reading on my MACD indicator.
Time Segmented Volume in the case of both GOOG and AAPL crossed down through the zero-line yesterday. TSV remains both below the zero-line and its moving average. Finally, the Worden’s Stochastic turned down from overbought territory at the beginning
of this week and
has continued to drift lower.
The upside momentum appears to be lost with both AAPL and GOOG and it would not be unreasonable to expect both stocks to pull back from here to their respective 200-hour moving averages.