From the everyone has one dept....
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FirstAlert(tm) Digest 8/26/10: Lower Lows Ahead For Apple
9:10 am ET 08/26/2010 - Investrend
(Comment on this article at financialwire.net
- Technical Market Commentary -
August 26, 2010 (FinancialWire) (Go to financialwire.net for all recent commentaries.) -- Today's FirstAlert(tm) features Apple, Inc. (NASDAQ: AAPL), Citigroup, Inc. (NYSE: C), the SPDRS S&P 500 Trust ETF (AMEX: SPY), Bank of America Corp. (NYSE: BAC), the PowerShares QQQ Trust ETF (NASDAQ: QQQQ), the Financial Select Sector SPDRS ETF (AMEX: XLF), Air New Zealand, Ltd. (OTC: ANZFF) and more…
“Lower Lows Ahead For Apple” (By Frank Kollar) -- A week ago we wrote that shares of Apple, Inc. (NASDAQ: AAPL) likely had lower lows ahead because of a bearish Head and shoulders pattern that had developed. We also wrote: “If shares of Apple close below $245, we would expect that considerably lower lows are ahead. There is initial support at $234.63 and then $224.15.”
On Tuesday, August 24, AAPL closed at $239.93. The head-and-shoulders pattern is complete and pointing much lower. On Wednesday AAPL reversed from just above support at $234.63 and closed at $242.89. AAPL will likely fill the gap created at the open on Tuesday August 24, and could even reach $253.63. But upside should be limited.
AAPL still has several support levels just below. The 50% retracement support for the March to June advance is at $234.63. The 61.8% retracement support is at $224.15. The 200-day moving average is at $231.26 and rising. These various support levels could stop the declines but it is more likely that AAPL has considerably lower lows ahead, possibly a test of the February lows at $190 a share in coming weeks.
(Go to financialwire.net for more about Mr. Kollar, and go to financialwire.net for more of Kollar's commentaries.) |
