AAPL: DOWNSIDE PRICE TARGET ACHIEVED, NOW WHAT?
In January, I put together a technical piece regarding potential downside targets in AAPL. The first downside target mentioned was based on the trajectory dating all the way to 1987, right before the crash. The downside target determined by this trajectory was 400-420 on AAPL over the short to intermediate term.
click chart to enlarge
AAPL
Now that we are in the intermediate term we can see that the downside target on AAPL has been achieved, with a somewhat anti-climactic response. Keep in mind, not only was a key trajectory penetrated to the downside this past week, but a key round number (400) was also broken. If you would have asked me two weeks ago what kind of response I would have expected to such an event, I would have guessed the following:
1. High volume for the week
2. Price fluctuations that are more expansive than usual
AAPL saw neither of those things happen this week, despite the fact it melted right through its trajectory and broke through 400. It was as if the stock broke 427.25. Nothing but crickets chirping, with the occasional streamer going off in the background.
Here is a look at both the current daily and weekly charts to gauge what investors can expect from AAPL now that it is sporting a 3-handle:
click chart to enlarge
AAPL DAILY
AAPL WEEKLY
