Technical Analysis of Financial Markets

Friday, August 04, 2006

Apple Computer, Inc (AAPL)

The recent uptrend in Apple has been broken due to a sell-off on news that it will probably reduce some of the profits it has posted since 2002 because it improperly accounted for employee stock options. With RSI and stochastics signaling overbought conditions, a short-sell trade to Fibonacci retracement support levels may be possible. The 50% Fibonacci retracement level at $60 also serves as gap support. Stop-loss close above $70.

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