Apple’s bounce doesn’t impress technical analysts

“Apple Inc. shares have bounced over the last week, but technicians warn a real bottom isn’t in place,” Tomi Kilgore reports for The Wall Street Journal. “‘The primary trend is still lower,’ said Craig Johnson, senior technical research analyst at Piper Jaffray. ‘I’ll be more interested [in Apple] when there is a downtrend reversal,’ as in the break of the recent pattern of lower lows and lower highs.”

“Since Apple began its slide in September 2012, there have been four bounces that have been bigger than the current one, in November, January, February and March. Each of those rallies peaked below the highs seen in previous rebounds,” Kilgore reports. “In addition, each subsequent low, after those bounces petered out, were below previous post-bounce lows.”

Kilgore reports, “For traders who follow the century-old Dow Theory of market analysis, a pattern of successive lower peaks and lower troughs is a defining characteristic of a downtrend. To break this pattern, and to get technicians to think a sustainable rally is possible, Apple would need to close above the March 25 closing high [$463.58].”

Read more in the full article here.

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29 Comments

  1. If Apple wasn’t such a strong company these assholes wouldn’t be doing this to it. Apple can afford to be dragged down because it has the power to get back up.

            1. @3l3c7ro What does your comment have to do with trying to justify coolfactor trashing Apple and chastising me? He has NO right and you are stupid. Why do you morons hare Apple. Are you hoping to get paid by Samsung. They do pay some idiots to promote themselves and try to trash Apple. Who is the scumbag you scumbags?

  2. Algos trade markets up and down creating technical triggers that can further move markets in directions that have nothing to do with a century’s worth of history – 95% of which was created pre-algos. Trade your charts old man, AAPL will rocket higher when the algos push the stock high enough to flush the shorts, and, with the help of the “headline-signaling” media, scare the the sheep back into their fee-collecting, sell-side broker’s waiting hands. AAPL is the best, most talked about company in the world – don’t trade it – buy it, hold it, don’t listen to the noise, and you will be handsomely rewarded.

  3. The answers to the headline, “Apple’s bounce doesn’t impress technical analysts”, are insanely simple…

    (1) Anal-ysts have their heads in their ass
    (2) Anal-ysts have shit coming out from their mouths constantly.

    my 2 cents…

  4. Why don’t these chart idiots wait until Apple price goes downward before trying to dump on it? It was up over $8 today. That is NOT headed to a lower low.

  5. The difference now is Apple is also buying those dips with a vengence as well as smart money value/dividend funds cognizant of Apple buying back 16% of their stock and increasing dividend 15% to 3%/year. Apple mgt was deeply frustrated with the stock drop and has put 100B$ to attack the problem, good enough for me. (and of course some new killer categories in 4 mo). Hearing that Apple’s margin could have been 1% higher and EPS 0.45 higher except for the China “warranty” issue a few weeks ago also is a nice treat.

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