Key Points, Levels for Technical Traders of Apple (AAPL)

December 5, 2012 11:39 AM EST
Apple (Nasdaq: AAPL) is ticking lower today on news that at least one brokerage is raising its margin requirements on the stock, signalling that others might follow suit soon.

Some technicians are taking the field as well, highlighting that Apple might be headed for what's called a "death cross." Huh, just in time for the holidays, too.

The "death cross" is when a shorter duration SMA and a longer term SMA both point lower, with the shorter one crossing below the longer one. Today's example (pointed out by the WSJ) as the 50-day moving below the 200-day average. Apple is showing hints of that sort of movement, based on a one-year chart. It would be the first since 2008, one Dow Jones analyst pointed out today.

We're going to offer up a few ideas as well, using a one-year OHLC chart for Apple. Mainly, Apple seemed to also have found support above a 50-day SMA with negative 5 displacement, having crossed below the moving average at the start of October. Prior to that, it provided a pretty good support line on the stock.

There's also several key levels investors might take notice of. One is the $575 level, which Apple gapped below today and has been an activity point over the past year. The $650 level is also good, having been both a resistance point and support point on Apple's rise higher.

For the bears out there, take note of $525 when volume usually rises to support.

And, technicians can draw a trend line extending from highs hit on March 13th this year through a low on November 16th and find that it extends out to the $500 level.

Prior to today's run, Apple was showing similar slope to the one made from December 2011 through the middle of April. The drop yesterday and today put a kink in that idea, but traders should again watch for something similar above $575.

Shares of Apple are off of lows, down just 3.7 percent today to $555.

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