Apple, Inc. is sitting on a major source of support after droping over 25 points in about a week’s time. Will it bounce, or will more weakness be seen? Here are the levels to watch..
Pivot Range Support
Apple is sitting on the monthly pivot range, which has held as significant support throughout the bull trend from the last several months. Every test at this range has been a call to action to “buy the dip’ers”.
If price continues to honor pivot range support from $335 to $338, we could see another big bounce that pushes price to new highs. Otherwise, a violation of this zone could lead to more weakness back toward $323.
Inside Day
The daily chart shows price has also formed an Inside Day pattern, whereby yesterday’s price range was completely engulfed by the prior day’s price range. This is usually indicative of a major breakout opportunity ahead.
Watch the two-day price range for a violation – up or down – for the next significant move out of this stock. Watch $345.40 for strength and $337.70 for weakness ahead, as the resulting move could span about 20 to 25 points.
Let’s see how this one plays out!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss
