- Posted by UpsideTrader
- on October 8th, 2012
This may be the upteenth post on $AAPL today, I don’t know, but the stock is heavy here, so I thought I would opine.
The last time $AAPL closed below the 50 day simple moving average was on July 25 and 26. That was the bottom and the stock proceeded to rally about 124 points until the recent top a few weeks ago at 705.
If you look at the rectangular box, you may remember the entire free world was watching the 620 level for a massive breakout. The 620 level broke out, but not like people thought, because it stalled a bit, and then ran like a scalded monkey.
What appears to be in motion now is a bearish head and shoulder pattern and as you can see above, the neckline is starting to get under attack. The yellow line is basically the neckline of that pattern and it appears to have been violated today.
Now this doesn’t mean the end of the world by any stretch for $AAPL. As a matter of fact, most head and shoulder pattern don’t validate and send a stock to pixie dust as many think.
It is possible however, that it may want to go back and retest that big breakout level around 620, this is possible and would still keep it in a bullish uptrend.
The stock is obviously heavy here and I always say, this stock can be a gift or a curse depending on your entry. Frankly, I thought the low that was put in on October 2 would hold. So, just like the end of July, AAPL has put in two closes in a row below the 50 day moving average. We’ll see if three times is a charm tomorrow.
Worries persist about a GPS system that puts you in Toledo when you are going to Baton Rouge, and today we starting hearing about a “Purple Haze” when you take certain pictures with the iPhone. Many say innovation is on the back nine and some want Cooke benched in favor of Tim Tebow.
I say chill , let it come in a bit more and then just buy the crap out of it.
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