Bearish Pattern for Shares of Apple Inc (NASDAQ: AAPL)
Says Market Timer Frank Kollar
August 19, 2010 (FinancialWire) (By Frank Kollar)
Shares of Apple Inc (NASDAQ: AAPL) have been been moving
mostly sideways since mid-April. There is a chart pattern
developing that could be pointing to lower lows ahead.
Looking at a daily chart of Apple, shares rallied to a
high in April of $270.83 a share. After two months of volatile
mostly sideways trading, shares rallied in mid-June to
$273.85 a share. After again trading mostly sideways, shares
rallied one more time in late July to close at $264.08.
This creates a head and shoulders pattern and such topping
patterns typically result in a new trend to the downside.
If shares of Apple close below $245, we would expect that
considerably lower lows are ahead. There is initial support
at $234.63 and then $224.15. Also the 200-day moving average
for Apple is at about $230 and rising.
Any of these support levels could be the lows for a decline,
but a four month long head and shoulders pattern seems
to point to a longer term decline, possibly to the $200
level or even lower.
The Fibtimer.com (http://www.fibtimer.com)
Stock Timing Strategy does not currently hold a position
in Apple Inc.
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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