Friday, November 9, 2012

Apple (AAPL) may be bottoming

NOV09 0708PST. The five-minute candles chart of Apple (AAPL), showing price over approximately the past month, shows a capitulatory steepening of price action, which is often a precursor of a bottom and sometimes of a "V-shaped" recovery, to use that favorite term of recent political campaigns.

Two noteworthy points: First, price proceeded over most of the time period in a moderately-sloped sell-off, although it began to distance itself from the upper channel line over time.

Second, price violated the first channel's lower boundary and formed a new, steeper channel. And it's now hugging the upper boundary of that second channel.

AAPL. Oct 12 to present. 5-minute candles.