Shares of Apple Inc (NASDAQ: AAPL) Not Responding Well to Rally
Says Market Timer Frank Kollar
February 25, 2010 (FinancialWire) (By Frank Kollar)
Shares of Apple Inc (NASDAQ: AAPL) remain mired in lower
to sideways trading since the company’s recent announcement
of their highly anticipated tablet device, the new Apple
iPad as well as their last quarterly earnings report that
posted a huge, better than expected, increase.
Based on the news and earnings, we would expect Apple
to be at new rally highs. They are well below their highs,
closing Wednesday at $200.66 a share.
Some chart patterns that are of concern are:
Apple shares look like they have had a bearish double
top on January 5 and January 19. They did bounce off the
$192 level in early February, a level that also held declines
back in December 2009. This creates a strong support level.
But that bearish double top is worrisome.
Apple shares have broken below a rising trend support
line that has held all declines since May 14, 2009. They
remain below this support line.
Apple has a huge a loyal following of investors and users.
But it will still respond to a bearish close below $192
a share, the February lows, as short sellers have no mercy.
Traders should watch this level.
If Apple can close decisively above $205.88 a share, the
61.8% retracement of its January to February decline, it
should make a run for its prior $215 highs. But watch that
$192 level.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com)
which offers market timing strategies for S&P and
Nasdaq index fund traders, as well as bond, gold, small
cap, sector, ETF and stock trading strategies.
Kollar’s research has shown
that the financial markets are in tradable trends approximately
80 percent of the time. FibTimer strategies define trends
and trade them in both advancing and declining markets.
Caring nothing about what newscasters say or what the
latest economic indicator predicts, trends are where
the profits are, and that is where FibTimer is.
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