Wednesday, August 05, 2015

What is Up with Apple ($AAPL)?


Shares of Apple finished down $3.80, or 3.2%, to $114.64 in regular trading yesterday, Tuesday, meaning they have fallen more than 14% since hitting their high of $134.54 on April 28. Given the massive size of Apple's market value, this sell has wiped out $113 billion in paper wealth.

From the above chart, it clearly illustrates that Stage 3 (Red Circle) Distribution Phase is probably complete; and Stage 4 Declining Phase has started.

Stage 3 Distribution Phase probably ended with the “Bearish Spread-Triple Bottom Formation at $120. Given this formation, the downside “potential” price objective for AAPL is $84.  Near-term support is at $98, which is the Bullish Support Line.

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