Downtrending Apple AAPL Triggers another Sell Signal

What’s going on with Apple (AAPL)?

This week shares broke a key trendline support level, breaking out of a triangle pattern and giving us yet another sell-short (or sell) signal in an ongoing and confirmed new downtrend.

Let’s take a look at what’s going on and what the short-term future may be for this once high-flying name:

First, trends are defined by price, and downtrends are marked by lower lows and lower highs.

Apple is downtrending on the daily chart and just broke under a key trendline support level at $115.00.

Note the highlighted Triangle Price Pattern at this level along with the rising (lower) trendline.

Earlier, price shattered this key pivot point and volume surged as price broke lower.

This was a validation of the breakout, triggering a short-sell (or liquidate) signal that resulted in price falling to where we are now under $110.00 ($109 at the moment).

Here’s the weekly perspective for a broader view of what’s going on:

Apple (AAPL) peaked in a distribution pattern (divergences) above $130.00 per share.

From that multi-month peak, price collapsed mid-2015 toward $100.00 per share.

Price is possibly triggering another impulse sell signal or breakdown from key trendline support.

If so, look for price to travel lower toward $105, or even the $100 level again.

Apple in this pattern would not be a safe buy until (and unless) it gets back above the $110 and $115 levels.

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).