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Apple Broke Down - What do the Charts Say Now?

Apple Broke Down - What do the Charts Say Now?
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When Apple spiked above its 50 day moving average, we warned traders to curb their enthusiasm although consensus was turning positive. You might recall these pieces:

The Battle for Apple's 50 Day Moving Average is About to Get Ugly

Apple Says 'Happy Easter' By Setting up Three Technical Traps

Specifically, we warned that a break below $420 was possible if recent chart patterns continue. This morning, Apple convincingly broke through that low and reached a low of $406.55. A major technical sell off is happening.

For Apple longs, this isn’t good news. The next weak level of support is found around $380 back in December of 2011. A stronger support level is found at $360 in November of 2011.

The chart paints a picture of a broken stock. Other than short term pivot points, the stock has no meaningful support until another $40 is shed from the price. From a technical perspective, this is not a buy on the dip name right now.

Disclosure: As of this writing Tim Parker is long Apple. (And licking his wounds)

Posted-In: AppleNews Technicals Tech Trading Ideas Best of Benzinga

 

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