Last Update: 5.16.13
Fall Back & Inv. H&S Reversal
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Rise or Fall | Next Couple Days is the Key
Very bearish analyst has turned and become very bullish...inverse head and shoulders.
But we already knew that. :)
Also gives a reason about Tim Cook heading to Washington to testify on Tuesday. Didn't see that coming but another case for the bulls.
Here is a link to what we already knew...
Good job Kay on spotting this earlier.
Hey Kay, What App do you use to draw on your charts. I love it =]
Kay, old resistance, new support?
50 ema was a very tough nut to crack.
I was waiting for this to fall back.
Looks like it hit the 50 ema perfectly today.
50 ema = 442.16. Todays low = 442.15 !!!!
I got rid of my puts (barely made anything cause I was too impatient).
Now I look for entry to ride this back up towards WWDC in June.
I think 50 ema is a good start. then 430ish for a possible right shoulder (inverted H&S). then 420 for double bottom.
The 100 EMA was strong resistance for Apple this week, backed off from it quite a bit during the course of the week, while the indices were markedly higher. Just consolidating before another move higher, or is a retest of the lows appearing more likely?
After I saw some resistance the other day near 460, I noticed that it hit the same price as the last high. Then I noticed a potential reverse head and shoulders. I was about to post my observation but then I noticed you already saw that and put it in your video. LOL! Except I thought 430 in april was the left shoulder instead of your 430 in march. Nevertheless it looks like we are seeing the same thing. But I have to see some event catalyst to support the technicals and...we have it!
Apple running up because of dividends (ex dividend date is tomorrow - thurs, so the last day to take that juicy dividend is if you buy apple shares today - wed). But we are seeing some resistance now that we are near the dividend date AND we just so happen to hit the 100ema at the same time. But there is nothing else going on afterwards (no news has been bad news for this stock) so that could cause this stock to pullback. Also could see profit taking after the big run up along with the fact that people already got their dividends so no reason to hold it for now. So what would cause it to come back in a few weeks to form that reverse head and shoulders? The WWDC event in June. Then we are in the summer months and rumors of new or updated devices will start swirling causing it to go higher. So futures events and the TIMING of those events seem to support the strong possibility for a reverse head and shoulder. I will be looking to buy some puts this week and will cover them when they get near 430. Then ride it back up. Since I am anticipating a move back up in June, I have no need to buy puts past June expiration. High risk, high reward.
One more item to support a more bullish stance in Apple is this: We have seen apple tank and keep going lower even as the market was being VERY bullish and making new highs. But now we are finally seeing apple move up ALONG with the market. FINALLY!
Your analysis was great and really helpful.
Thanks and good luck!
Kay, Great analysis as always! So I guess you are not in AAPL right now? I am not either. Have a great day!
by Kay Kim