Chart of the Day: WWDC Fails to Move the Needle on Apple
IPhone maker stays range-bound for now.
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It's not like the Worldwide Developers Conference (WWDC) was going to trigger a slew of buying in Apple AAPL. Rather, we were looking for some clues as to the direction the stock might take over the next several sessions. Unfortunately, we don't really have those answers. But, the chart does tell us what is happening now and frankly it is not all that bullish.
Looking at the indicators and the price action proves the condition of Apple is simply ... meh. That means the stock is stuck in the mud right now, with prices mostly going sideways to down, the candles have flipped to pink/purple which is bearish on the GoNoGo composite of indicators in the top pane. Momentum is trying to push higher as seen in the Stochastics in the second-to-bottom pane. But the Average Directional Index as seen in pane 3 is heading lower, telling us the strength of the trend is poor. That makes sense with the stock moving sideways.
In a bearish sense, Apple could move lower, only because it is below important moving averages like the 50, 100 and 200 day. Money flow, as seen in the bottom pane, is weak and pointing downward.
It all adds up to a chart that says Apple has yet to make its move, but when it does it might be a large one -- but we don't know yet which way that will be.
We like Apple in TheStreet Pro Portfolio and rate it a two, or stockpile on pullbacks.
The Pro Portfolio is long AAPL.
