AAPL Basic Technical Analysis
Here is a chart of AAPL ” the Greatest stock of all times” and its hard reversal yesterday. The stock broke out from a Cup shaped pattern and than reversed hard disappointing many investors who expected this thing to climb higher. The forces of buyers and short sellers resulted in a 20 point downward move from 674 levels to 653 and since than it has recovered a bit from it. If the stock stays above 644 its support, all action should be considered positive.
What is not apparent to many new traders that this could be a handle formation in the stock which will be confirmed in 1 to 2 days after this sluggish action where the stock may go up higher and than creeps back lower as volumes dry up. This is a typical of cup and handle formation and nothing new. Some profit taking and some new buyers coming in create a mix where there is slightly downward trend in the stock. This is what may be the case, but it needs confirmation.
Just because the stock ran up to 674 and there were high expectations to hit 700 may or may not happen right away. The giddy enthusiasm has been curbed for now. But being patient here, soon this stock will bolt again to higher grounds even if it forms a handle here.