Catching a falling knife is usually a loser’s bet, and I’m not calling the bottom right now, but I do believe that Apple has fallen to an important support level around $418-$427 zone where it first launched the huge parabolic move in January of 2012. I’m adding a starter position in Apple here, and will buy more if it should fall to further support zones. As of right now though, It’s from this $420 level that Apple staged an earnings related gap up to the $440 and by April it was at $640. The pattern topped out at $700, and the stocks been in free fall since then. A bearish head and shoulders pattern price projection targets Apple falling $40 more dollars down to $380, so we could still have some more downside to go before a meaningful bounce. If shares should fall to that level I would add to this position. (more…)