I think we’ll see a rebound as early as the next Monday. However the sell off in the past 4 days was strong so rarely it’s just one legged therefore NORMALLY the rebound would fail eventually. Technically the intermediate-term still is up because there’s no lower high and lower low on the daily chart yet. Whether the coming rebound could make a pair of lower high and lower low is what we need watch closely.
The chart below explained why we’ll see a rebound soon:
- Biggest bar plus volume surge, so today’s red bar might be an exhaustion bar, therefore a rebound is due soon.
- AAPL down 4 days in a row, 64% chances it’d close in green the next Monday. Buy at close today and hold until the very fist up day, you have 82% chances to win something in the past 2,000 trading days.
A little follow up info on the huge money inflow from block traders I mentioned in today’s Trading Signals. It might be nothing because on 03/17 Featured Stock, I mentioned huge money outflow from block traders, which seemed very bearish, but the next trading day, which is 03/19, AAPL was up a lot.
The last week drop could be the beginning of more severe correction on AAPL. Key support 595-600, if break below a quick drop may proceed.
There are not many trade btw 550 to 595.