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Shares of Apple Inc (NASDAQ: AAPL) May Have Lower Lows Ahead

|Includes: Apple Inc. (AAPL)

May 27, 2010

Shares of Apple Inc (NASDAQ: AAPL) have lost ground since their all time high close at $270.83 was reached on April 26.

With a 10% decline to date, has Apple corrected enough that we be looking for a resumption of the advance?

Back in February we wrote a bearish analysis of Apple stock and had our head handed to us as the stock rallied. This is a company that has a loyal following and it is hard to anticipate declines. Those loyal supporters just keep buying.

But here we go again. Our analysis is based solely on what we see in the chart with likely support and resistance levels being reached.

That said; we see strong support for shares of Apple at $222 a share, some 9% lower. Should share prices reach this level and reverse, it will make a low risk bullish trade set up with a stop below $222.

We would not be inclined to take a bullish trade at current levels.

Disclosure: No Position