APT appears to be overextended to the long side and may be due for a slight correction.
Reasons for this evaluation:
--> Solid Bearish Engulfing candlestick pattern has occurred (Bearish reversal)
Last 2 bearish engulfing patterns along with an overbought RSI resulted in a reversal. This indicates a higher probability trade setup.
--> RSI is moderately overbought (As of the 22st @ 66.59)
--> ATR is at record highs
Each new major ATR high has result in some form of correction whether small (5-10%) or large (100%+)
--> Other Large Cap stocks on the ASX such as BHP,RIO,FMG have also provided bearish signals in the last few weeks and an overall market downtrend can support this evaluation
Reason that oppose the success of this evaluation:
--> APT as a single stock has a tendency to follow fundamental analysis rather than technical
This includes being extremely responsive to news catalysts, positive forecasts and more
--> Positive news reports in regards to tech and software can positively effect APT
**Any Supporting ideas that can improve the analysis of APT are all welcome