Apple Inc. (AAPL) — The popular worldwide 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. Tuesday’s low at $78.20 marks the support of the formation.

Today, Apple will no doubt open higher on its better-than-expected Q1 but look for a rally to die out at just over the 50-day moving average. Holders may want to sell AAPL there and traders short it with a downside objective of $75.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.