APPLE in Consolidation

After making a great run in 2010, going from $190 to $270, AAPL has now settled and has been consolidating for past 3 months.  As seen from the 3 month daily chart below, AAPL has mainly been trading between $240 - $270 range with a “Bull” Trap” occurring at $275.  I do not expect AAPL to be in this state for a long time and thus we should soon see AAPL making another major movement.

At this time, it is difficult to predict the next direction.  Therefore, I recommend we should carefully watch support at $240 and resistance at $270.   If bears cause APPL to decline below $240, then expect a movement towards $220 with strong negative momentum.  However, if bulls cause APPL to move higher above $270 or $275, then expect a movement towards $300 and with strong positive momentum.

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