AAPL stock price went above 442 in after hour trading but failed to hold the high. Instead, it settled near the 435 price point. This pop from earnings could be the start of a trend reversal for AAPL. In order for AAPL to demonstrate it has reversed from the current down trend, it needs to close above the declining trend line with a price above 438, and then it needs to break out the double bottom price pattern by moving above the 465 pivot level.
From the weekly price chart, the 465 is near the 61.8% Fib retracement level for the price range between 2009 low to 2012 high. And the 385 is the 50% Fib retracement. A double bottom price pattern has formed between these two Fib retracement levels.
On the daily price chart, one can see a declining trend line from the recent lower high and a long term resistance level near 438. AAPL needs to break the resistance from the confluence between these two lines of resistance.
The key for tomorrow for AAPL is to hold the after hour gains and close above 438. If neither of these materialize, then look for continue decline toward the 400 level again. But do not expect AAPL to fall below 385 since AAPL has bought back some stock during the last quarter and the low for the quarter is near the 385 level. Based on the buyback activities from last quarter, one can speculate the buyback price might be somewhere between 385-400.
Disclosure: No position in AAPL.
