KirkLindstrom.com - Articles - 2013 - AAPL: Apple Price Gap Filled: Resistance And Support Graphs
Kirk Windsurfing at Palo Alto in SF Bay in May 2009
  Apple (AAPL) Resistance & Support Levels
Historical Apple Data from 2008 to 2013 		Kirk Windsurfing at Coyote Point November 2009
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March 4, 2013: Apple just filled the open gap I pointed out to my subscribers last year as one reason I was not interested in Apple when it was near all-time highs.  I also wrote two Seeking Alpha Articles about Apple (link) suggesting other stocks I liked better while questioning the valuation assumptions.  On Jan 27, 2013 in the comments section to the second article I wrote:
I still don't own Apple. It is still just a bit above the open gap that probably needs to fill. Also, these stocks often correct well past where fundamentals say it is a good price as individual investors who bought with all the Apple hype here and on CNBC over the last year give up on it and sell for a loss. When I see Cramer and/or Brinker "give up" on Apple... that might be the bell ringing.
Now that the gap is filled, one could take a shot here with a tight stop but beware there are two very strong resistance levels below the current price.  Also, open gaps are usually the minimum expected move.  Prices often go well beyond open gaps.   Brinker gave up on Apple but Cramer still complains about the lousy valuation for the shares he holds after claiming to have sold half his position at a higher price.

Below is a graph showing Apple (Ticker AAPL) Resistance & Support Levels from 2008 and a second graph with comparisons to Sony, HP and Dell.

Key features listed below the graphs.
 Apple Resistance and Support Graph

My second graph compares AAPL to Sony (SNE), Hewlett-Packard (HPQ) and Dell (DELL).

Apple Resistance and Support Graph
Key features:
  1. The thin, dashed-green horizontal line shows the once open gap at $425.00 filled today.   In my last update, "Apple Price Gap Still Open" I wrote:
    • One form of TA (technical analysis) says the downtrend won't reverse until this gap is completely filled and it can go lower before it turns."
  2. The thick, dashed-green line shows a four-year support line that was broken and is now resistance.
  3. Two Fibonacci levels remain support at roughly $390 and $316.
  4. Current AAPL Charts and Quote
Note:

Note 1.  Source: stockcharts.com
 
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