Apple May Have PeakedApple has tried to bounce recently, but some traders may think the tech giant has peaked.
The first pattern on today’s chart is the February low of $225.70. AAPL broke under the level on March 11 and has stayed there since. That may suggest old support is new resistance.
The stock has also remained below a 50 percent retracement of last month’s slide, which may confirm downward price action.
Third, the bounce in the last 2-3 weeks may be viewed as a potential bearish flag. Would a move under the line represent a breakdown?
Next, stochastics are nearing an overbought condition. A dip from here may suggest the recent strength is fading.
Finally, AAPL is one of the most active underliers in the options market. (Its average daily volume of 897,000 contracts in the last month ranks third in the S&P 500, according to TradeStation data.) That may help traders take positions with calls and puts.
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