“Apple has gapped up following its earnings report. Its relentless decline following that knee-jerk rally points to lower prices ahead,” Dr. Alexander Elder and Kerry Lovvorn write for MarketWatch.
“This is our third post on Apple in the Trading Deck series. On April 12 we published ‘Parabolic move makes Apple a short.’ On the day it closed near $623 we wrote: ‘A parabolic rally marks the terminal stage of a bullish trend. Every rally in history that went parabolic ended in a drastic drop,'” Elder and Lovvorn write. “On April 23 we published an update ‘Apple dip not done yet. Next stop $500.'”
Elder and Lovvorn write, “If you think that the trend of AAPL is still bullish, it is reasonable to expect another pullback to the value line. That line was at a $513 last Friday… On the other hand, if you think that the parabolic rise in AAPL has been broken and a bearish trend has began, we have a much lower target. Whether you’re a bull or a bear, the current pattern of AAPL reconfirms our first target of $500.”
Read more in the full article here.
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