Apple has dropped 16.5% from its all-time intraday high six weeks ago and now there are a few reasons that price action is telling us to look for the possibility of a bounce in the near term.
Do you look at the 200-day moving average, the volume weighted average price (VWAP), Fibonacci levels or maybe moon cycles to help determine actionable points in the market?
What if those price indicators were all coming together at once, would you buy?
STUDY CHART FOR CLUES
I wouldn’t, but I would definitely get very interested in the shorter timeframes to look for clues to time a trade and now is the time to study AAPL for those clues. Sentiment also seems to becoming more negative towards AAPL, fears of cannibalization of the iPad from the mini iPad may be causing some extra selling.
FEARFUL SELLING
Fearful selling is seldom right, in fact it often comes at short term turning points. Pay attention to the price action in AAPL.
Watch Shannon’s video analysis of the Apple chart below.
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