Shares of Apple Inc. (AAPL) dropped another 2% on Thursday as the broader stock market erased all of Wednesday’s post-FOMC rally. Apple stock has looked weak for the most part of 2015, and now it has arrived at a crucial juncture through both the longer and near/medium-term lens.
Bulls would be wise to respect that heavy look of AAPL stock, while active investors may find opportunities on the short side for the time being, particularly on bounces.
Feeble bounces followed by big smackdown selling days is not what a healthy stock is made of…?
What the first chart shows is that AAPL stock in the first seven months of 2015 developed a triple-top, and with the oversold bounce in the autumn developed the right shoulder of the pattern. From here, a marginal break below the black “neckline” support line should lead to another oversold bounce before Apple shares can see a better resolution lower, and they may tumble into the mid- to high $80s. That’s where longer-term investors may find better entry points to the stock again.?
Read my full analysis HERE