Yesterday, AAPL gap down to the $315 range with little resistance.
This comes right after its $326 level was broken; $326 was supported 3 times previously. With $326 giving way, $320 offers little support and AAPL fell through with a gap down.
With Jon Rubinstein appointed as CEO of PALM, I expect that there will be more ‘innovations’ coming out of Palm’s product line.
This is probably a very good setup for more product lines based on WebOS. Financially it will be challenging because of the downturn. At the same time, it is also the best time to take market share from other competitors who may reduce spending on R&D.
It feels like the time when Steve Jobs was heading Apple again. A perfect setup for multi-years growth, perhaps?
AAPL has a good run since the last rally. And it deserves so.
A premium brandname, great product line and an incredible quarter despite Steve Job’s absence.
However, looking at the Weekly Chart suggest that it is going to slow down and take a break.
1. The candles are getting shorter.
2. It is hitting resistance at $124 on the Weekly chart.
3. And there is also a huge kumo ahead.
At the same time, if there is a successful breakthrough above $130, then AAPL may on to something. Perhaps a new product line, the return of Steve Jobs or something that blows our mind off.
For now, I am anticipating that it will retrace for a while. With a retracement, it will setup a possible cup-n-handle formation.