Wednesday, November 7, 2012

Apple (AAPL) approaches 4-year channel support

NOV07 0917PST. Apple is approaching support from a 4-year channel.  The channel is defined by four price action local extrema, circled in yellow. Only three touches would be enough to define a channel -- two points to form one line, and one additional point to define the second, parallel line -- and the fact that a fourth local extreme perfectly touches the channel adds evidence to its explanatory potential.

In zooming into the chart, the 4-year channel would be expected to today support AAPL near $549. In tomorrow's trade, the support would occur around $550.

AAPL. Nov 2008 to present. Daily candles.