The high of AAPL is barely above 700+. Prior that a left shoulder has been formed in Sep and then in early Oct we see the right shoulder and quickly followed by a breakdown.
The estimated expected drop from the breakdown has almost been formed on Friday19 Oct. It hit a low 609. The 50 days moving average stood at 661.
I see some bearish divergence coming from the MACD histogram ie. the stocks made a lower low from 650 to 609 yet the MACD sort of did not made a lower impact enough. However, do note a high volume transacted on 19 Oct. Everyone is nervous and the implied volatility is definitely very high at the moment.
AAPL is announcing its earning on 25 Oct. Google has disappointed investors and its share saw a drop last few days from 750 to 680. Will AAPL follow suit? Or AAPL used to be very conservative set a lower guidance in order not to disappoint investors. Whatever the route, we will know next week.
Disclaimer: Options involved risks and not suitable for everyone. Do not use it for future or real trades. Whatever discussed or suggested here are provided for general education and discussion. I claimed no responsibilities for loss of trade with any result of this.
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