Because Apple is the zeitgeist of the bull market that began in March 2009, I have been giving regular analysis of its stock. The last Apple update was on October 8, and at the time Apple was experiencing a correction. Apple reached the potential support level on Friday that was given two weeks ago in the October 8 post.
Apple has a major product announcement tomorrow so I thought it might be timely to update the upper and lower KRAs. KRAs (Key Reference Areas) are graph artifacts created through the Auction Market process. These are levels that tend to be important market inflection points. Unlike the majority of techniques used to calculate support and resistance, KRAs are generated by the market itself through the Auction Market Process. There is no magic involved. It is a process that generates consistent “support and resistance” in all markets and all time frames. It is an incredibly consistent, objective and robust way to analyze a market.
As you can see on the chart below, Apple is at present closer to potential support than it is to potential resistance. No doubt there will be some significant movement following the digestion of the product announcement.
A close below 598 would be quite bearish; it will take a close above 680 to restore the immediate bullish trend.