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Possible Divergence In Apple (AAPL)

That other day we talked about divergence: what it is and how you can use it to predict trend reversal. Today, it looks like the chart of Apple (AAPL) is showing some signs of possible divergence.

Obviously, if this divergence play holds true, then that would indicate a trend reversal in the stock, which would bring it down, in this case.

Note: We’re not necessarily looking for a huge or sustained drop, but perhaps just a minor dip.

So keep it on your watch list and track the stock to see how it plays out. Also, make sure to check out the video that details this play with more detail – Is a divergence building in Apple?
Divergence in Apple Video

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One Response to “Possible Divergence In Apple (AAPL)”

  • November 29, 2009 at 5:07 pm

    While true there's a negative divergence on the daily charts, it isn't confirmed on the weekly nor near term charts. This same formation can be spotted on most indexes as well.