There has been all kind of talk on AAPL failing to make new highs after their block-buster earnings announcement last week. To put it simply this is a bearish picture for the tech-glamour stock.
- Rounded Top formation pretty evident.
- Heavy selling volume last week, weak buying volume.
- If $600 breaks you can expect a retracement to $560-$550
- Earnings were amazing....why didn't arbituer's correct the price back to last weeks highs? Sentiment is bearish long term, that's why...bearish picture for economy = demand for apple goods will be much lower.
- To much Over-Head Supply on market = Strong Over-Head Resistance.
- If we cannot get past $625 on strong volume, then a fall below 600 is 100%.
- If moving past resistance fails, then we can expect testing of $560 level due to support failure.
Overall Apple has had an amazing run, but it seems to be to risky to not take profits on this mad winner, since it appears a Rounded Top formation is the case. I expect if we break 600, AAPL falls to 570...then if no rebound the downtrend will continue.
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