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Why $353 & $273 Are Important Support
On October the 26th of 2011 when Apple was trading above $600 per share, the Power of the Pattern reflected that an Eiffel tower pattern could be forming and Apple could experience a large decline on the right side of the tower. (See post here).
This pattern was key because Apple was facing a 30-Year resistance line, in the summer of 2012. (See post here.)
The chart above reflects that Apple broke below a 10-year support line last week at (1) in the chart above. With this in mind the question becomes, where is the next major levels of support for Apple come into play?
Apple created a double bottom around $3 per share back in the late 1980's. If you apply retracement levels to the 1987 lows and the all-time highs in Apple, two key support levels jump out, being the 50% level at $363 per share and the 61% level at $273 per share.
I suspect many thought the 30-year resistance line discussed last summer wasn't important, nor was the potential that Apple could be forming the right side of the Eiffel tower pattern. With Apple breaking below its 10-year support line, these natural support levels, (50% & 61%) could well come into play in the months ahead.
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