$AAPL Chart QuickTake, 06/05/14 Market Close: Rally-Tested, Rally-Still-Proven (“Until It Isn’t”)

Well, I guess AAPL was able to get past Ye Olde Resistance of 644 at least for today.

Don’t quote me – and whatever you do, don’t trade based on anything I type *points to disclaimers* – but I think the 7-for-1 share split record date is tomorrow. So I guess Friday’s the last chance to get in while AAPL’s (probably) still over 600! Whatever that means. 😀

I could be hilariously wrong on this, but even though a share split in a rational, flat market is theoretically meaningless, it still seems like an uncertainty to be aware of at least in the short term. I can’t seem to think of this Friday, next Monday, and maybe the next few sessions after that as being “unaffected” by the share split somehow.

So, why don’t I just stay fairly light on non-actionable commentary and just look at the “here and now” of the market close a few days before AAPL “divides by 7”?

(Click for full resolution charts)

5-min chart:

aapl-5min-060514close

– Looks more bull flag-type or constructive-price-action-type than anything else. There might have been bearish reads some other days, but not today, in my quite-possibly-wrong opinion.

– As always, the proof is in the resulting price action. If that’s a pennant-type formation forming today (suggests 10-point move if there’s a breakout), let’s see how it resolves.

Hourly chart:

aapl-hourly-060514close

– Nothing really new on this timeframe either, except for the MACD-h negative crossover (which hasn’t amounted to anything bearish yet). Interestingly, you could make a case for the two bull flags on the 5-min chart looking kinda sorta like one on the hourly chart (from Jun. 2). Were that the case (too early to tell), that’s an implied move of around 20-25 points in the event of a breakout.

– Informal ascending “tracking lines” in orange and dark blue. Wonder if they’ll be instructive down the road.

– Generally speaking, the instantaeous read remains very constructive for bulls, if impatient and potentially volatile considering the higher velocity and accelerated trend.

Wrapping up with the daily chart:

aapl-daily-060514close

– Another up day, and a bit quiet (daily candle is something of a hammer, looks just fine for bulls). So I decided to zoom out a little bit and see the next potential battlefield, should AAPL get there. AAPL doesn’t have a lot of price history between around 650-685 (er…92.85-97.85ish). Whatever happened around that price band in either direction, happened fast. So why not keep an eye on that price zone?

– That green line looks like a “mid-channel” of that price band, but it’s just a recoloring of an existing potential bullish price objective (based on a measured move from 511 to the low 590s, breakout in progress), which, at 670, is roughly “mid-channel”.

See you on the virtual exchange Friday. Won’t be long before we get to see any psychology of share splits in action.

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