Wednesday, October 31, 2012

Apple a big mover on wednesdays open

3 month chart testing 200day (bearish channel)
If you were paying attention to the pre market, you saw that at a few point $AAPL was down as much as 7 points before open.  Apple continued down on the open testing the 200day support (587.70) two times with a low of about 587.50.  After testing that support two times, and anticipating a third, at about 11:10, it began a strong break out to to the upside to break the trend.  These are key analytical point of Apple, testing the HUGE 200day support twice, both bouncing off, and a spontaneous break to the upside.  Historically after testing the 200day Apple has made historic rallies within about 20 days time, of anywhere to 10-20%.  Be prepared to change your bearish technical mindset to bullish if it decides to  break through its previous day high of about 614.00.  Here is a 3 month chart showing the 200day test, along with a intraday chart showing small double bottom testing, along with the spontaneous break out.

Intra day low support of 587.50

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