Lower Lows Ahead for Apple Inc (NASDAQ: AAPL)
Says Market Timer Frank Kollar
August 26, 2010 (FinancialWire) (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.
The Fibtimer.com (http://www.fibtimer.com)
Stock Timing Strategy does not currently hold a position
in Apple Inc.
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.
Go to previous Press
Releases & Trading Notes.
Note: These Press Releases are short term in nature. They may or may not reflect the same position as current subscriber reports which typically have longer time frames.
© Copyright 1996-2010, Market Timing Strategies, Inc., All Rights Reserved.
FibTimer reports may not be redistributed without permission. These Trading Notes however may be distributed without permission.
Disclaimer: The financial markets are risky. Investing is risky. Past performance
does not guarantee future performance. The foregoing has been prepared solely
for informational purposes and is not a solicitation, or an offer to buy or sell
any security. Opinions are based on historical research and data believed reliable,
but there is no guarantee that future results will be profitable. |
