Lack of innovations articles and the recent downgrade of the stock definitely invited bears to take a crack at the beloved stock. There is no doubt that the negative sentiment is present. But let's look at the price action objectively.
- A notable trend line is broken and Its retest confirmed that. Bears are in control short term.
- A price hit a first support level while being in an oversold condition, look at the RSI.
Buyers are active on first test. A reaction at the support is in progress. The buyers need to show strength by holding that support first. A break of the small trend line would solidify their position and open the door for a retest of the confluence of the horizontal support level and the broken trend line.
The bottom line is if you don't hold any position then this is a waiting time. The longs could be considered if the price gets back to the support and offer the double bottom pattern. Shorts could be considered:
- A decisive break of the support
- A first retest of the broken trend line.
I will be watching the stock since It has a direct impact on the Nasdaq.
Stay nimble.
9/15/2019
- A notable trend line is broken and Its retest confirmed that. Bears are in control short term.
- A price hit a first support level while being in an oversold condition, look at the RSI.
Buyers are active on first test. A reaction at the support is in progress. The buyers need to show strength by holding that support first. A break of the small trend line would solidify their position and open the door for a retest of the confluence of the horizontal support level and the broken trend line.
The bottom line is if you don't hold any position then this is a waiting time. The longs could be considered if the price gets back to the support and offer the double bottom pattern. Shorts could be considered:
- A decisive break of the support
- A first retest of the broken trend line.
I will be watching the stock since It has a direct impact on the Nasdaq.
Stay nimble.
9/15/2019
