Thursday, November 8, 2012

AAPL...the pain isnt over yet.


Now that AAPL is down 20% from its highs many will be talking about the bounce opportunity, and there may be one in the short term. But the short term and intermediate term trend has changed to bearish (not yet below its long term bullish trendline so primary trend still bullish).

I have touched on this stock a few times in the past and now would be a good time for an update.
*Stock below all 3 of its major moving averages
*The fall from it 100day break to its 200day was telegraphed
*Institutional sellers remain vigilant about unloading their shares

Where does it stop? Not anywhere soon. Look for big levels like $550 and $500 to act as big psychological support but real support from the nearly 4 year bullish trendline doesn't come until the $460 area. Another level to consider is the $420 - $445 gap zone and the very large support level of $400.
Do I think it will get that bad? Yes...maybe not $400 but I would expect the bullish trendline from the March 2009 lows to be tested if not this year than early next.


No comments:

Post a Comment