Hi Shoppers,

Apple (TIcker: AAPL) has held its 200 day moving average after being tested the last three days.

Wednesday’s candle looked like it could have been a doji, signaling a change in that mini-downtrend since Feb. 16

But it did not pan out.

Thursday it traded lower, but did manage to close higher … and it actually looks like there could be a hammer on the chart, which would also signal a change in trend.

Today should give us the answer.

Looks for today’s action to do one of three things:

• • • Break out of this support to the downside
    • Hold the support but not trade any higher than the last three days (spinning top)
    • Trade higher than the last three days

If it trades lower than $146.50 – which closes the gap – and continues lower, consider next week’s 146 puts.

Don’t forget that a stock can close a gap and continue in the direction in which it came, which would be up, so watch for that.

If AAPL holds this support level but doesn’t trade any higher than the last three days, it could be forming spinning tops.

Spinning tops are a consolidation or a breather before the stock continues on in the same direction.

I would wait for confirmation before acting on this, meaning another day of action.

If AAPL opens and trades higher, say $151 for some time, consider next week’s 152.50 calls.

It will be interesting.

I know I will be watching.

Thanks for Reading … See You Next Tuesday,

Licia Leslie