Here we go again! Actually, it is more like “Here I go again!”
I like to pick on AAPL ’cause it tastes the sweetest when it is the most crunchier.
We have a dark cloud hovering over the AAPL candlestick chart right now. This is a potential bearish signal (and how many times have I said that?) which I am willing to bet that this is the last time you are going to see AAPL trading at $67X level. Again I initiated a small starter position to short AAPL using the Sept 21st $675 strike price put option to test my luck.
What you see in the chart below is the making of a dark cloud cover candlestick pattern which has the “potential” to signal a bearish reversal. Tomorrow will be the confirmation day if price open below today close and continue to head lower.
“What about iPhone 5 debut on the coming Sept 12 announcement?”
Good question! I see two ways price action will take on that day. A very BIG UP day or a very BIG DOWN day. For now, I’m letting the chart tells me what to do. There are still 7 days to judgement day so I am not going to worry about it right now.
Potentially, today high may becomes the next lower pivot high next to the highest high formed on August 27th. Thus, for the up trend to continue, today high must be taken out in the near future. It will also be used as a basis for my stop to cut my losses in case I’m wrong, yes, again!
Remember to follow the price action.