“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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