Downtrending Apple AAPL Triggers another Sell Signal

Dec 16, 2015: 12:09 PM CST

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.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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3 Comments

3 Responses to “Downtrending Apple AAPL Triggers another Sell Signal”

  1. R West Says:

    End of year tax loss selling though … so it’s tough to say chart controls here.

  2. stock option platform India Says:

    Nice

  3. Shamim Says:

    Looks a very much confirmed bearish signal yet we are never sure with these markets. I will definitely be eager to have entry with this chart having such strong signal, but still remember the basic rule of money management, if that’s into our plan then I will believe everything is okay. I do have very solid plans and that’s especially with OctaFX broker with their outstanding 50% bonus on the investment, so that is sort of thing that makes anyone work freely.