Caution advised for Apple stock

Approaching resistance at ATH

Apple’s stock price is approaching its All-Time High (ATH), a significant milestone that often leads to profit-taking activities. This could potentially slow down or reverse the stock’s upward momentum. Additionally, the Relative Strength Index (RSI) is showing negative divergence, suggesting a weakening of bullish sentiment. Traders should exercise caution and closely monitor these signals as they may indicate a bearish trigger, prompting short positions.

            Chart Notes: 

           • Chart time-zone is UTC (+03:00)

           • Candles’ time-frame is 4h.


The stock price of Apple is currently nearing its All-Time High (ATH), marking a significant achievement for the company. However, traders should approach this milestone with caution as it often triggers profit-taking activities. When reaching an ATH, some investors may choose to sell their positions, leading to a temporary slowdown or even a reversal in the stock’s upward trajectory. In addition to the ATH, the Relative Strength Index (RSI) is displaying negative divergence. This technical indicator highlights a potential weakening of bullish sentiment. Negative divergence occurs when the stock price makes higher highs, while the RSI fails to reach corresponding higher highs or forms lower highs instead. Such a discrepancy suggests a potential bearish trigger. Traders should closely monitor these signals and look for additional confirmations before considering short positions. By incorporating both price action and RSI analysis, traders can make more informed decisions to navigate the potential bearish reversal.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.