Stephen Suttmeier, a top Merrill Lynch technical analyst followed up “on a note he issued April 18, when Apple shares had broken through support at $420 on expanding volume and seemed to be headed straight toward the next support level at (gulp!) $325-$310,” Philip Elmer-DeWitt reports for Fortune.
“Friday’s Chart Talk acknowledged that April’s breakdown proved short-lived and that Apple was showing some ‘signs of bottoming,'” P.E.D. reports. “For evidence, he pointed to the chart of Apple’s on-balance volume (OBV), a technical indicator that is supposed to show whether smart money is moving into or out of a stock.”
P.E.D. reports, “‘Volume tends to lead price,’ says Suttmeier, ‘and OBV is a volume indicator that measures accumulation.'”
Read more, and see the chart, in the full article here.