Here's why 127 was a big level on multiple elements
1. HIGH VOLUME SUPPORT - See VPVR on right hand scale of the chart. More AAPL shares have traded at 127 than any other in the past 3 months.
2. Range Expansion on the rally back in May signifies where important buyers lay in wait for more stock.
3. The Profile (By profile, I am referring to the "normal distribution" shape of the purple and white histogram of price action) of the recent decline balances out at 127+ The sellers who have capped the advance might be tapped out down here against longer term, larger buyers.
What else stopped the decline?
Today is Tim Cook's Apple Developer conference - and the announcement of Apple Music
What else added to the decline?
Barrons' said Apple Watch isn't worth it (see this weekend's Barron's Magazine)
What to do next:
From here we want to see if AAPL can climb back to 129.50-130 where I plan to short with a close stop, perhaps as close as 132. If the market stalls and rejects 129.50-130, and you see a range expansion down day, I will add to the short. If we close under a previous day's low, I can also add to the short position.
If AAPL breaks under 126.50 on heavy volume, then the next target is the lows of the year (lowest "range" of the year).
Tim
3:25PM EST June 8, 2015 127.92 last AAPL
1. HIGH VOLUME SUPPORT - See VPVR on right hand scale of the chart. More AAPL shares have traded at 127 than any other in the past 3 months.
2. Range Expansion on the rally back in May signifies where important buyers lay in wait for more stock.
3. The Profile (By profile, I am referring to the "normal distribution" shape of the purple and white histogram of price action) of the recent decline balances out at 127+ The sellers who have capped the advance might be tapped out down here against longer term, larger buyers.
What else stopped the decline?
Today is Tim Cook's Apple Developer conference - and the announcement of Apple Music
What else added to the decline?
Barrons' said Apple Watch isn't worth it (see this weekend's Barron's Magazine)
What to do next:
From here we want to see if AAPL can climb back to 129.50-130 where I plan to short with a close stop, perhaps as close as 132. If the market stalls and rejects 129.50-130, and you see a range expansion down day, I will add to the short. If we close under a previous day's low, I can also add to the short position.
If AAPL breaks under 126.50 on heavy volume, then the next target is the lows of the year (lowest "range" of the year).
Tim
3:25PM EST June 8, 2015 127.92 last AAPL
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