apple inc aapl coming closeat capitulation for potential bullish reversal 971882015
(Click to enlarge charts) In the last couple of days, Apple (AAPL) has been the talk of the town as it has tanked more […]
(Click to enlarge charts) In the last couple of days, Apple (AAPL) has been the talk of the town as it has tanked more […]
(Click to enlarge charts)
In the last couple of days, Apple (AAPL) has been the talk of the town as it has tanked more than 10% from its current all-time high of 134.54 printed on 28 April 2015 and broken below the “venerable” 200-day Moving Average (in common technical analysis “speak”, it implies that the long-term uptrend is over for Apple).
Given that Apple is a major component stock of all the three major U.S. stock indices (S&P 500 & DJIA = 4%, Nasdaq 100 = 13%), any further slide will have a major negative impact on the broad U.S. stock market.
Based on our last highlight dated on 20 July 2015, it has also broken below the 118.90 pivotal support.
Let us examine now its current technical elements to shed some light on Apple at this critical juncture.
Intermediate support: 115.30/112.10
Pivot (key support): 103.74/100.72
Resistance: 119.20, 133.60 & 141.10/145.30
Next support: 81.80
Current technical elements are suggesting that Apple is at or coming close to a capitulation point. However, it needs to break above the 119.20 intermediate resistance is likely to neutralise the current bearish tone in order to trigger the continuation of the broad based multi-month upside movement to retest at least the current range top at 133.60.
On the contrary, a break below the 103.74/100.72 pivotal support is likely to see a further waterfall slide to target the next support at 81.80.
Source: Charts are from eSignal
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