AAPL IS Sitting On A Key Level
Before the iPhone was officially revealed to the public on January 9th, AAPL was trading at 85.00 and then exploded to the upside as traders bought or should I say chased into the news. Now we find the stock back down to the 85.00 level. If 85 is broken, every trader who was buying the stock for the past three weeks will now have a losing position.
Notice the past 10 trading sessions just about all of the days were black candles. This means that sellers are in control winning the day's battle by closing below each day's open. That's very bearish.
Notice in the lower panel the On Balance Volume (OBV) line is below the November and December lows while price is still above the January low. This tells me that all the volume we are seeing is selling pressure and if the OBV line is any indication as to where AAPL is headed I would have to say this stock will move lower.
I'm going to watch this stock for a possible short if it breaks below the 85 level..
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1 comment:
K-
I talked to a couple of friends in PCS and trading. The PCS guy told me, the client was like buy me 20K AAPL shares (not $ amount) when the phone released.
The trader said the smart money has been taking profits last 8 points! A lot of retail people getting flushed out.
Perfect example of buy the rumor sell the news! I think AAPL will come back into play around 78 level, since last time it bounced of that.
Let's see.
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