Apple Inc (NASDAQ: AAPL) Breaks Support Says Market Timer Frank Kollar
July 22, 2008 (FinancialWire) (By Frank Kollar)
Shares of Apple Inc (NASDAQ: AAPL) broke below support in after-hours trading Monday, July 21. After bouncing three times from intra-day lows around $164 a share in June, AAPL did not rally as expected, but instead meandered lower until Monday’s selloff.
The Fib 61.8% retracement support at $162.73 level held in Monday’s trading, with Apple rebounding to close with a gain at $166.48. However this level failed after-hours.
Apple released a better than expected earnings report, but said that it’s estimated fourth-quarter earnings would be around $1.00 a share, less than expected. In after-hours trading Apple was off more than 9% as this analysis was written.
Critical support for Apple was at $153.72 and this level failed in after-hours trading. If Apple remains below $153.72 during Tuesday’s regular trading, a likely event considering the earnings report, Apple will continue lower to test the next support level at $144.71 a share.
A close below $144.71 would result in a test of the February lows, all the way down at just below $120.00 a share.
The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy has a position in Apple .
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
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