Apple AAPL Breaking Down with New Price Level Planning

Jul 9, 2015: 12:36 PM CST

Despite the broader market bounce today, Apple (AAPL) shares broke one key support level and may yet break another important level at which shares are trading now.

Let’s see these levels, starting with the Weekly Chart, and update our trade plans accordingly.

First, the weekly trend remains up/bullish yet this trend is under threat both from negative divergences at the highs (of an extended trend) and the breakdown under the rising 20 week EMA.

Keep in mind that Apple (AAPL) shares have remained trending above this level – bouncing up off of it twice – since mid-2014.

If sellers continue to pressure this stock lower, liquidating or distributing it, then it could open a downside sell pathway toward the rising 50 week EMA and price cluster near $115.00 per share.

While price recently broke under the 20 week EMA ($125.00), we’re focusing our attention on two specific levels:

The lower weekly Bollinger Band ($121.75) and this key level seen on the Daily Chart:

Similarly, the $121.00 price level is the three-time (and possibly four time now) support inflection low during 2015.

Ultimately, buyers can once again find value here and “bounce” the stock up away from this level for a fourth time, creating an aggressive buy opportunity (with a tight stop).

However,  sellers could work their will, liquidating price down toward the rising 200 day SMA ($118.00) or the rising 50 week EMA target ($115.00).

Either way, be prepared and know what you’ll do with your trades in advance.

Whatever other indicators you are using, be sure to focus your attention on the current $121.50 pivot.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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4 Comments

4 Responses to “Apple AAPL Breaking Down with New Price Level Planning”

  1. Bear Trap Trigger Puts Price on Path to All Time Highs for Apple AAPL | Afraid to Trade.com Blog Says:

    […] For our prior update on Apple, see the post “Apple Breaking Down – New Level Planning.” […]

  2. Apple Springs Bear Trap Says:

    […] For our prior update on Apple, see the post “Apple Breaking Down – New Level Planning.” […]

  3. Abdul Says:

    It’s amazing to see such high level been broken so quickly; it could be a decent chance to enter into sell, but we must think of tight money management, if we do anything else then we could be losing badly. I am using OctaFX broker with their perfect system with low spread of 0.2 pips, high leverage up to 1.500 and have smooth trading platform like cTrader, it’s seriously helpful for allowing me to trade very easily and I can be relax with it.

  4. A Big Drop and Breakdown for Apple AAPL | Afraid to Trade.com Blog Says:

    […] First, start with a prior update from July appropriately titled “Apple Breaking Down – New Price Level Planning.” […]