Apple Inc. (NASDAQ:AAPL) is retesting a key breakdown line on the 60 minute chart. This line starts from March 5th, 2010 per the chart below. Note how it hits many times and then on March 19th, 2010 it finally breaks lower. After a short drop, it is now surging back to retest that key line. This is a major resistance area on a retrace basis. If Apple closes above that line, it would be a major bearish failure pattern and could signal more upside.
Apple Computer has been the market leader for quite a while now. It is truly the technology powerhouse the markets look towards. Any weakness or inability for Apple to retake that trend line could be a signal of weakness, not only for the markets but for the whole entire market. Just over a year ago, Apple was trading well under $100 per share. Since then it has been on a one way track, chugging higher.
Keep an eye on this stock and that trend line today and in the next few days. Should it recapture that line, watch for a possible move to $230 or higher. If it fails to recapture that trend line, a fall could happen quickly. It is possible to see Apple eventually sell off to $200 by late summer.
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Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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