This weekly chart shows you all you need to know about what Apple (AAPL) must do going forward.
Break below this month’s lows, and it could see that move that takes us well into the $80’s.
You also have a massive head and shoulders pattern on the weekly chart that has formed over the past year-and-a-half, but has yet to confirm. Break below the January lows, or worse, the August Flash Crash lows and it gets really ugly from here.
For now, the trade has yet to do this and the risk reward is extremely favorable if you play the bounce off of the $95-ish level. I actually like this a lot as a trade setup right now. For now, I am long on the stock and looking for a possible move back to $100.
Also, you have a cup and handle pattern forming on the 5-minute chart of AAPL in the post-earnings trading today.
