Apple reported earnings last January 22, 2008 after the closing of the market that did not please investors, specially as far as the forecasts for this trimester and the sales.
These results caused that Apple opened on the following day with an important bearish gap. Nevertheless, the turn that gave American markets that day (fuelled by financial companies after rumors that Credit Suisse was going to make a takeover bid for Bear Stearns), left a hammer (in candlestick charting) that could indicate us a turn in the bearish tendency in which it is the value from December of 2007. The bounce took place on the support of the 126 dollars, that corresponds to 38.2% Fibonacci ratio of the rise from 2003!
Nevertheless, this hammer was not confirmed the next day did because the candlestick was black and closed below the closing of the hammer. Therefore, until we do not see a signal of change of bearish tendency, the value will continue falling, until 126$ support level and, if it is lost, until most important 112.5$ support level. At this level stock price must bounce if it does not want to plunge to 100$ (though 50% Fibonacci ratio of the rise from 2003 correspond to 104$).
Therefore, we will be watch out for the Apple chart. We will try to see a change in the bearish tendency through the candlesticks at this support levels.