Apple (AAPL), the popular international maker of personal computers, portable digital music players, and mobile communication devices topped off last May at more than $190 a share and tumbled from $160 in early September to $82 in early October.
A rally from the October low to around $110 and a subsequent decline to $79 set up the current channel-down pattern.
The December 20 low at $78.20 marks the support of the formation. Now with stocks in a bear market rally and the stochastic giving a recent buy signal, AAPL might provide a trade with a target of $98.
By Sam Collins of OptionsZone.com
