Thursday, January 03, 2013

Apple Inc. (AAPL) Micro Short Broken






Last week AAPL broke the micro short with a short squeeze. Yesterday we gapped up to previous resistance (yellow line). Now we are consolidating the move.  I wouldn't be surprised if we fill yesterday's gap completely and bounce.  There is a small gap around $569 which could provide resistance as AAPL makes its way to our target of $605.00

8 comments:

chin said...

Thanks for the chart and updates on AAPL Jamie.

Great work and appreciate it always.

AAPL is filling the gap pre-market.

How does pre-market affect the technicals. I have seen the levels being revisited during regular trading in most cases.

Thanks again.

Jamie said...

Chin,

I usually ignore pre-market price action unless it relates to earnings or news.

Today we have a bearish island reversal, unless we can fill the morning gap area.

chin said...

I think it is over for AAPL. Caving in to the 532 key level again

Jamie said...

The ext. long ambush was not defended by the bulls. Looks like AAPL forming a handle to BO and go straight to 450.

I bet my brother that AAPL would go to 600 before 450. Looks like he is going to win that bet.

chin said...

I remember, you mentioned a handle earlier too. Where is it forming ? I do not understand this.

This could be the correction which you have been talking about..

Jamie said...

Chin,

Small handles form at base of support/resistance just prior to BO.

Here is an example on CRM hourly timeframe

http://screencast.com/t/Uqlk75GO

If AAPL retests lows and we see this type of price action, we can anticipate BO.

Jamie said...

Cont'd,

If AAPL forms a handle at base of $555, then we anticipate BO long.

chin said...

AAPL is holding up above the 525 level. Call and put volume is huge around 530 on the weeklies.

Pinning could be in place ...