Reasons for this evaluation:
--> Solid pattern has occurred ( reversal)
Last 2 patterns along with an overbought resulted in a reversal. This indicates a higher probability trade setup.
--> is moderately overbought (As of the 22st @ 66.59)
--> ATR is at record highs
Each new major ATR high has result in some form of correction whether small (5-10%) or large (100%+)
--> Other Large Cap stocks on the ASX such as BHP , RIO , FMG have also provided signals in the last few weeks and an overall market downtrend can support this evaluation
Reason that oppose the success of this evaluation:
--> APT as a single stock has a tendency to follow rather than technical
This includes being extremely responsive to news catalysts, positive forecasts and more
--> Positive news reports in regards to tech and software can positively effect APT
**Any Supporting ideas that can improve the analysis of APT are all welcome
I do however believe there may be another drop prior to earnings. Which i will be observant of. This belief is supported by the ATR which is still severely overextended as well as the RSI still hedging an overvalued range.