AAPL falls today in premarket by 2% or 14$ because sales of iPhone 5s have reached 5million. Despite that big number, expectations were higher and that is why the stock is falling in pre market. The longer term trend channel as shown on the chart still is valid and prices are well within its boundaries. Support is initially found at 680$( 50% retracement from 657$ and then at 657$ (mid-september low). Very strong support of the rising trend channel is found at 650-640$ level. There is a gap found at 670$ and the 61,8% retracement is at 672$. If those supports are broken, then the entire bullish trend will be at danger. Until then, a correction is possible at the mentioned support levels and needed in order to relief overbought status.
The decline will also show us through its pattern, if this decline is impulsive. Usuall impulsive waves don't start with gaps and that is another reasong why we are more bullish than bearish.
Thank you for taking the time to read my thoughts.
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