Sellers are in control of $AAPL (down 27.7% from the all time high to Friday’s close) and people have been slaughtered trying to pick the low of the pullback. Picking tops and bottoms are the most difficult job on Wall Street. With Apple, a whole new group of people are realizing that every stock experiences excruciating declines, regardless of what their business is.
Is this the ultimate top in Apple? No one knows the answer to that question, and my perspective is that it doesn’t really matter. Apple has a cult following, but it is just another company which is subject to the cycles of business and shareholders who blindly believe a company is “good” will suffer at some point.
The charts below show some levels where support may be found, these areas are simply POTENTIAL areas of support, not levels which should blindly be bought into. The trend is still lower and any purchase should be considered high risk but there will be some nice bounce opportunities in the coming weeks for aggressive traders.
The main level to focus on is 455 to 465.
-465.60 is the 38.2% retracement of the 2009 low to the all time high (top weekly chart)
-The trendline from 2009 is found ~455 (weekly chart)
-461.22 is a 61.8% retracement of the 2011 low to the all time high (daily chart below)
-The volume by price chart (daily chart) is a little spookier for those looking for a low, there is not a lot of volume support below until the stock drops towards 400-420 which could be where the stock ultimately reaches.
******SPECIAL WEBINAR MONDAY AFTER THE CLOSE****** I will be doing a live (free) webinar Monday after the close to discuss the market and some individual stock setups. You can REGISTER HERE for MONDAY’s (DECEMBER 17) live event from 4:05-5:15 PM Eastern.