Investors are excited about the new iPhone 8 expected to be unveiled Tuesday.
Still, Apple CEO Tim Cook is selling Apple AAPL shares. What does he know that we don’t? Maybe there’s nothing there. Anyway, to explore the answer, let’s start with a chart of Apple stock.
Please click here for a monthly chart of Apple stock and observe the following:
• Apple will become a $1 trillion market-cap company if the stock rises to $193.70.
• Stock charts often display symmetry. The current move up is marked “B” on the Apple stock chart, and the prior move is marked “A.” So far, the current move is as symmetrical to the prior move as it gets in the real world. A price of $193.70 is within easy reach, especially if fundamentals of the iPhone 8 support the move.
• The RSI (relative strength index) has traced a lower high in the overbought zone and is declining. Stocks showing such an RSI pattern at a time of high expectations are typically vulnerable to the downside.
• The chart shows that this leg up has occurred on low volume. This makes Apple stock vulnerable.
Stock moves around iPhone launches
Apple’s stock on average moves about 16% in the six months prior to an iPhone launch. But only about a 4% rise occurs in the subsequent six months…Read more at MarketWatch
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