APPLE is 500$ the new 700$?

Who has the upper hand in S&P now?
September 16, 2013
Ben’s hunt for ‘Bears’
September 19, 2013

 We come back to APPLE today remembering our analysis from a couple of weeks ago (http://trading2day.com/?p=1620) where we saw a good bearish tradeable opportunity near 490-500$ level with 464$ first target and 410-420$ as second target. In that post we noted how important it was that prices had broken down and out of the upward sloping channel and that as long as the resistance area of 500-510$ was not broken upwards, the bearish scenario would be the one to prevail. After the presentation of the new iPhone models, prices collapsed and our subscribers were informed that we were already with a short position and 510$ as stop and first target at 464$.

aaplD

Prices got rejected at the resistance and fell towards our first target where we closed half of our short position profitably. Now we believe it is time for the downward pressures to resume and push prices towards 430$ at least. Breaking below 420-410$ support will signal that more downside potential is to be expected and most probably the share price will make new lower lows than 38$.

aapl60m

Short term resistance is now found at 460-65$ and at 476$. Breaking above that price level is not likely according to our analysis, but if bulls manage to beak above that resistance level, then we could expect to see prices near 490-500$ again to close the gap. We think it is more probable that selling pressures will continue and support will be found near 430-35$. If that support fails then we should expect the low 400’s to be tested. More updates and detailed analysis and a view of my trades in APPLE can be seen if you become a subscriber.

As always, thank you for taking the time to read my new post.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.