Apple in the danger zone – again ($AAPL)
20 abril, 2012 Deja un comentario
Some weeks ago I commented on Apple’s bearish signals above 600$. Today (April 20th) it’s showing, again, several weakness signals that should concern long positions. The most remarkable technical elements we should be following now are:
1. The price gap between 568$ and 576$ – it’s a support zone and a capital reference for the stock, which was tested indeed on monday and provided a rebound on tuesday. Under serious pressure right now.
2. 50-day Moving Average – this reference is being followed by thousands of technical analysts as well; if it were to be pierced, we could find ourselves in the middle of a selling frenzy. Around 570$ at the moment (Update: 23-04-2012: Apple is breaking the level)
3. For quite some time we haven’t seen -in Apple- a series of descending highs which would span 10 days at least. Notice the bearish secondary trendline.
There is a lot of exposure to Apple by investors and funds, which quite simple could not afford not to be invested in the stock. As a company under a 24-hour surveillance by analysts and traders, and with a lot of funds that could cash in a profit since they come from very low entry points, not to mention the sell alerts which might be triggered by the points above, a heavy selling, fast period could happen anytime.
Be careful! (and cover your trade if you didn’t a month ago as everybody else did).