Wednesday 5 December 2012

AAPL - poised to crash under $500

Apple (AAPL) suffered a second consecutive decline, collapsing 6.5%, to close @ $538. Considering the underlying momentum -and still weak main market indexes, AAPL looks set to challenge the recent low, take it out, and break the hugely psychological $500 level.

AAPL, daily

AAPL, monthly


Frankly, the AAPL chart looks crash-like. We have a black doom candle on Monday, warning of a failed rally, which was confirmed yesterday.

Today's very significant decline is a CRASH warning. Not necessarily of the main indexes, but certainly, for AAPL.

A break <$500 would most definitely give everyone a real scare, and the next level would be somewhere in the mid 400s. So, we could easily be looking at a drop of $75-100 in the coming days.

Technical warning

The fact AAPL is set to get a 'death cross' - where the 50 day MA breaks the 200 day MA, this Friday (or even tomorrow) only adds to the general 'crashy' air that now surrounds this once invincible stock. Amazing.