AAPL Topped...

AAPL has been hitting record highs in previous weeks, however yesterday price action for the stock was bearish. For instance the peak never reached the resistance of $215. Instead the price went back down to end just below $206.


The chart marked in green are the two occasions where price reached the resistance $215. Yesterday's price was a sign that prices would go lower because it was a lower high. Although Apple will probably announce their latest and greatest product today, the peak in the prices have topped. If we close below $198 in the week to follow then further weaknesses are in store. Presently I sold a vertical call spread in the stock and do not expect stock price to reach $220 by February expiration.

Anything is still possible, but odds are in my favor that prices remain below $220 mainly because of the strong $215 resistance. Even yesterday's significantly higher volume was unable to crack the price level.