AAPL - OUTLOOK FOR NOVEMBER
The last 2 days have been very unusual for AAPL, while all major stock indices increased in value; this tech giant has seen two days of reducing returns. Right now (Nov. 11 2011 at 10:00 AM) AAPL is trading at its 38.2 Fibonacci retracement line which acts as a major area of support, if this area of support does not hold the next major support area will be the 50(EMA) on the weekly chart which is at $352.
After testing new highs of $420 in mid October, AAPL looks to be consolidating on a pull back and traded in a range of (390 – 410) for about a week. The past few days broke below the trading range on slightly higher than average volume.
Outlook for AAPL
AAPL daily chart is showing over sold signals from both Bollinger bands as well as stochastic oscillator, this indicates that the short term swing to bearish territory is coming to an end, a reversal sign should be accompanied by high volume. However, if a reversal sign doesn’t show and a bearish move continues prices could go down to $352 (about 8% from current prices), before its next level of support.
