$AAPL . Bearish cross and support

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$AAPL continues to gap down on news that China Mobile is reducing its subsidy for iPhone 5c; a move that may have an impact on the sales.

Currently, on the Ichimoku chart, a bearish cross is seen with a critical support level at $453.84 .

Should the price level close below this or unable to bounce off from this level, given the thin kumo support below, it is likely $AAPL will drop to $392.



$AAPL : Resistance of the gap and weekly kumo

Daily Ichimoku chart of AAPL

$ AAPL rises from the lows of $390 till $500 on news that Ichan has acquired stakes in it.

On the daily Ichimoku chart, it would have point to a great bullish move.

However, with the announcement of the iPhone 5c and 5s, it seems that the market has price in the lack of innovation on the Ichimoku chart.

Weekly Ichimoku Chart of AAPL

We can see a gap down on the daily chart. More importantly, the price remains below the kumo on the Weekly chart.

Clearly, this suggests that the major bullish trend is over for $AAPL.

The growth of the mobile device is hitting a plateau and  the exponential growth in revenue may not be possible in the near term.

For those who bought at $700, it will be a very long term investment if one is going to hold and hope that $AAPL will hit the levels again in the next 1-2 years.


$AAPL . Kumo support for $AAPL at $497

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$AAPL has fallen on various reports that it is cutting down on parts for iPhone.

As it falls, it presents a good buying opportunity (bullish).

Currently, $AAPL has drop to about $500 and is trading near the kumo support.

It has not pierce through the kumo yet suggesting that the bearish trend is not confirmed yet. There is a chance that it will bounce from this level.

However, we need to have a cut-loss in mind at around $497.