Over the years, I've traded and observed correlation between price of AAPL and Technology stocks as a group / sector and it shouldn't be a mystery to anyone here that the correlation is direct. AAPL is at the cusp of a major breakout or a strong rejection, which would not bode well for Technology stocks in general. Here are some key indicators I am tracking (also illustrated on the chart):
- RSI on daily is now hitting Sep 2020 levels where it experienced a sharp pullback, but not quite at the level where it was in Jan 2020.
- Strong accumulation the past week and a half or so.
- ADX is picking up suggesting further momentum favoring the bulls, who by the way, are in complete control
My bias is towards a breakout given the ADX / DMI readings combined with the strong/rising RSI that still has just a little more room run, however, if it doesn't, it would also create for a not-so-pretty pullback like the ones we've seen in Sept 2020.