“On a technical basis, Apple now trades well below both its 50- and 200-day moving averages and a giant head-and-shoulders pattern suggests further possible downside action with next significant support in the $375-$400 level, some 25% below current levels,” Nyaradi writes. “Many die-hard Apple fans remain convinced that the current share price decline is a buying opportunity, and it might well be. However the bears will tell you that many investors felt the same way on Oct. 12, when AAPL was trading at $630 per share and that the company’s chart is forming an ‘Eiffel Tower’ pattern.”
Nyaradi writes, “Based on fundamental and technical headwinds, the party in Apple appears to be over, at least for now. While oversold and due for a technical bounce, Apple is clearly in a downtrend that shows no sign of ending anytime soon. A bear bite for Apple is significant because the company is the 900-pound gorilla of the U.S. stock market, and as Apple goes, so goes the market.”
Read more in the full article here.
MacDailyNews Take: Staring at stock charts and seeing pretty architecture/tourist traps is an interesting way to make investment decisions.
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