With a deepening global recession starting to weigh on iPhone sales, AAPL has been leading the stock market south. If it falls to the lower channel-line shown, that would equate to a drop of 8%. Support comes in at around 120.50, but it could take 3-4 weeks at the rate things are going, meaning the eventual bottom would be under $120. And it would be a bottom of sorts, although I expect the stock to fall eventually to $50 or lower. Alternatively, the stock would need to surpass the 149.97 peak recorded on December 13 to generate an impulse leg of daily chart degree. The stock will continue to be tradeable regardless, so stay tuned to the chat room for timely ideas such as the call-option recommendation I put out last Thursday. ______ UPDATE (Dec 28, 6:01 p.m.): AAPL’s plunge toward my minimum downside objective has been steeper than I’d imagined and could take less than two weeks, not the 3-4 I’d initially predicted. The channel line is so clear and compelling that the smart money that manipulates the stock cannot do anything about it. AAPL will not only reach the trendline, it will begin a significant bear rally from very close to it. Any other outcome would turn the chart even more bearish than it already is. My long-term forecast is for a fall to at least $50. For your further guidance I’ve recalibrated the trendline and determined that it comes in at 121.75 this week and 121.40 next week. You can play the bounce using sub-$1.00 calls expiring by mid-January, or by bottom-fishing with an rABC ‘como’ trigger.
AAPL – Apple Computer (Last:126.04)