The chart of AAPL shows a steady uptrend for the last few months and why not? You-gotta-have-them-cool-gadgets they dish out are selling like crazy.
One can notice that the recent price action has bearish divergence when measured against momentum indicator RSI. It implies that the underlying strength is waning. This is rather elementary method of noticing divergence.
Divergence is marked with blue lines and arrows.
Not much of a surprise keeping in view what is happening at the broader market level.
Time for a healthy pull back.
What is surprising is that the ticker with quite handsome volume has plenty of gaps (marked by shaded areas). A gap below $155.03 would create an island reversal top. Caution: there is nothing apparent to warrant that. It is just that the patterns resides in the beholder's eye!
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