Apple has violated its more bullish uptrend around 110 a few week ago. (not counting the flash crash in late Aug 2015). Now, its forming a weekly head and shoulders pattern with the neckline around 105. On Monday, the stock showed relative strength to the market and covered the down gap from the opening. It would be interesting to observe if there is a bigger move in play around the resistance zone of 105 to 108 area. If you followed me on my last head and shoulders post on APPL, the completed head and shoulders formation is now the right shoulder of the weekly head and shoulders pattern.
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Comment:
Apple retested the 105 neck area on the weekly and is now trading below its previous high around 100 (pre-market). I like the short below 100. Mostly likely, the bigger move will come before and right after the earnings at the end of Jan. Good luck to all.
