Re: Re: Gap open Friday. Most bullish close in 2 years over 200 DMA
by balastona.Nov 21, 2012 8:28 PM.
50 DMA is moving up and HAS CROSSED the 100 DMA
50 DMA is at $7.97
100 DMA is at $7.59
200 DMA is at $10.12 and stock closed at $10.27 comfortabley over the 200 DMA
This also took out the $10 round number which psychologically was playing a sellig point before.
RSI, MACD and Stochastics are all Super bullish.
RIMM could gap open Fidat and blw past $11.13 as it is a shortened day and many will try to rush in.
There is no esistance ntil mid 11s a very small one and then to the $16 area.
Volume has been very high. These all indicate a big gap open is i the works.
Short term target is pointing to the $450 range. There is no such thing as a double bottom becuse all those holding above the $510 levels are now bagholders and are waiting to break even and get out. Therefore path of least resistance is down.
The general markets are also in bearish formation. AAPL chart is completely broken with the major averages crossing in a bearish manner. This damage will take years to reverse, if at all due to the large market cap. However there will be money to be made on the long and the short side of AAPL trading.
The major bearish indicator is that $500-$510 levels were intraday capitulations levels a few weeks ago. A capitulation level only indicates a bottom if the stock price does not revisit, let alone violate that level. These capitualtion levels have now become intraday trading ranges which means there is a bigger capitulation coming hence the violation of the $500-$510 double bottom.
AAPL lead the run up and AAPL is leading the down turn. This could even go below the $450 level in February registering new 52 week lows then.
End of the year tax selling is just a red herring. The stock is broken and out of favor