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AAPL Bearish Engulfing Pattern, Again!

Thursday, 16 February 2012 04:59

Every 5 to 6 months the world's greatest stock for buyers gives us a short term sell signal. The last one occurred back in September 2011, this is known as a bearish engulfing pattern.

In the last 7 times this pattern has been confirmed, AAPL has dropped at least 7% and in one case 22% with an average of 9 days. In last September the drop was 13% in 5 days and I was able to take amazing advantage of this.

What will happen this time? Hard to say but the stock was way overbought on the RSI and is down $4.50 in premarket today. Watch for the lower low today from yesterdays low for confirmation, then I would watch $480 and $454.50 as support.