Wednesday, October 19, 2011

AAPL - more room to go?

I think that AAPL has more room on the downside. Earnings report has put a dent into "perfect stock" aura, which has surrounded AAPL shares for a few years. This could just be a blip on bright future's radar. But we, traders, see the tip of our noses first, and it is telling me that there are 2 unfilled gaps down below. Both of them are laminated with moving averages: 50 and 100 dsma, giving me some serious conviction. So here they are: 388.81 and 369.80 respectively. But be careful getting carried away on this trade, so many dip buyers are lining up to buy.

This view will put heavy downward pressure on NDX, as AAPL has 12% weighting.

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