Apple chart points to more downside
Wesley Harr | email@example.com
AAPL has seen two consecutive closes below its reactionary high from the gap up last Wednesday--a negative technical signal--the day after it reported blowout quarterly results. The price action since that peak of $615.64 suggests that the stock may fill the gap lower.
The April 26 and 27 respective closes of $607.70 and $603 opened the door to a break of Apple's first support around the March 30 low of $597.94. The stock opened this morning below that level, and the large air gap between that price and the next support area at the March 14 low of $575.40 allowed for today's accelerated drop.
These support levels are indicated by the orange lines on the 10-week chart at right. Although they do present opportunities for the stock to stabilize and rebound, it should be noted that the lowest level of support on the March 12 close of $552 was technically never filled to the downside, with the April 24 low of $555 coming closest to it.
All of this indicates a downside potential back to that $555 area.
(Chart courtesy of tradeMONSTER)