Saturday, 11 October 2008

Rotten Apple

Gone are the days when Apple Inc. (Nasdaq: AAPL) has its share price lording it over its rivals.  From a "measly" $40 back in 2005, AAPL has climbed up, with the help of its innovative products the iPod and iPhone, to as high as $200.  Because of this, many have already regarded Steve Jobs as God's gift to technogeeks.

AAPL dove down to as low as $115.44 before climbing back to the $180 area.  From there, it took around 6 months before it nosedived again.  It started diving steeply in September and hasn't stopped since...until last Friday.  Before its performance last Friday, it formed a double top to create a neckline around the $115 area and it was pointing to a downside target of $65.  Friday's market probably had people capitulating that things seem to have turned around suddenly.

From a start of -$3, it ended the day in positive territory, creating 
a bullish outside day although the volume is a bit suspect.  The MACD is not yet reacting that a rally is in the offing but we could check this out and see if the momentum will carry over into next week.  Should this prove to be the reversal point, a quick 3 to 5% profit won't be hard to get.

All this remains up in the air depending on how the markets react to all the efforts being done to stave off a global disaster from happening.

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