The Apple (O:AAPL) Trade Has Been Intriguing Recently.
There is a clear base that has formed over the past couple of weeks and if this stock manages to drop below $92 -- which not only represents the August lows that everyone thought was unreal and insane -- but also represents the area that the stock bounced from in January and again this month. If that price level breaks, there will not only be major problems for the stock, but there will probably be a major correction to the market as well.
You also have a nice convergence of price with the 5-, 10- and 20-day moving averages right at or below the current price. When you look at overhead resistance if this stock manages to break decisively out of its base, you then have very little to get in the way of the breakout level and $107 on the chart. Granted, the market will have to engage in a massive rally in a process that takes price as high as 2040, or so, which isn't impossible. But it's too early to predict the possibility of such a price move taking place. Instead, I prefer to take this market just a day at a time and let current price action dictate what I will do on any given day.
It's also worth noting the declining trend-line that still remains unbroken. Breaking the downtrend might be all that Apple needs to jump-start the price action.
