Apple Computer (AAPL) was setup in a strong position as I posted a couple weeks ago. So far it has not taken advantage of that position and looks to be ready to break down. My long term outlook has been weak for a while. But I was thinking AAPL could get a nice bounce with the market. I think it is do or die time for this chart.
On the intermediate term chart AAPL hit the 1/4 price retrace at the 3/8 time cycle. This remains bullish and could be that price just needed to get somewhere on Friday. Any low below the 165 level that holds will turn my outlook for the short term to bearish.
Price is also exactly 180 degrees down from the May high. This is a good place to bounce but Friday did not put the stock in a good position to do so.
Tags: AAPL · Square of 9 · Square of Range7 Comments
7 responses so far ↓
Andy, apple earnings are tonight after the bell…while apple usually guides conservatively, they likely will beat expectations by quite a bit. Now, that may not mean there won’t be a sell-off after hours, but usually the second half of the year is the strongest part of the year for apple (back to school, k-12 and university)….
People in the apple group are saying that apple could earn 1.27 (compared to the 1.00 they guided), and guide to 1.19…
while any sell-off in apple will hurt my current position in it, I would welcome such a sell-off to position myself for january 09 and 10…
Good luck Kurt. It looks to me like any close below 165 is headed quickly to 154 with 135 and 115 possibilities. You can make a lot more money selling quickly and then take the buying opportunity with a lot more money. Of course, if 165 holds then 192 will most likely be tested quickly.
max pain for apple last week was 150-155….
the group i follow thinks that apple could hit 210-220 by october, and over 240 come January… I am long a couple of october calls, as well as some January ones….
I am thinking of playing bounces and selling once we get overbought, which is what i did beginning of March-May…
yeah, wish me luck
(i need it…)
Apple is Gonzo .. First GOOG now apple. Nasdaq is in deep $#%#$.
In my opinion Apple is done for a while. No seeing 200 for a long time…
yup…not good….at the same time, even if apple beats by 10 cents next quarter (They beat their number by 19 cents), they will have earned $5.20 for FY08, and a PE of 25 brings you then to around 125…. don’t think we will sink that low though (although you’ve called it before)… (september 127 low or so…)….
the next couple of days ought to be very interesting…
D’OH!
Last time I dropped an apple on the floor it split in half. But this one bounced pretty high…