Price Action Signals Bottom In AAPL Near Term
The price action over the last few trading days in Apple Inc. (NASDAQ:AAPL) is signaling a near term bottom in the stock. The iPHONE maker has fallen from a 52 week high of $705.07 to low on Friday of $533.75. This is a drop of almost 25%. When looking for a bottom, the percentage drop means little. What means the most is the price action.
The price action on Apple has switched from bearish to bullish since last Friday. First, note the reversal on Friday. The stock tried to break lower and ended the day sharply higher, even with a late day swoon in the stock market. Today, the stock opened higher only to sell off. However, it has since rebounded. The low today was higher than the low on Friday. Higher lows are a bullish signal.
These signals, compiled with a 25% stock price correction and an overly bearish Wall Street signal a bottom is in the making in the near term. Upside could take the stock back to $600.00 in the near term.
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