Bad sign: Apple’s stock breaches key technical level that could signal further weakness

“Apple Inc. stock has breached a technical level that could signal further weakness, according to one investor,” Jennifer Booton reports for MarketWatch. “Shares of the iPhone maker were [down]… pushing below the $108 level.”

“Andrew Nyquist, an investor who runs the finance and economy blog See It Market, said on Friday that a break below $108 ‘should warn of lower prices,’ while a drop below the $106.26 low of Dec. 16 ‘may warn of a retest of $100,'” Booton reports. “‘Lots of folks are raising Apple price target to much higher levels … $130, $140 or even $150,’ he said. While Nyquist called achievement of these targets ‘quite possible,’ he said an investor’s entry point for such a large-cap stock is extremely important for success.”

Apple [AAPL] shares are currently trading at $105.89, down $3.44, a decline of 3.14%.

Read more in the full article here.

16 Comments

  1. Good time to buy Apple shares no matter what the idiots claim. I’m sure Apple is definitely buying back their shares at this pricing opportunity in order to boost EPS. I’ll bet all those shyster hedge funds are getting plenty burned today while trying to cover their yearly losses as stocks that couldn’t miss in 2014, like Google, Netflix, Amazon and Priceline. Today should be putting them deeper in a hole.

    As long as Apple is making big money from selling huge numbers of their best product, that’s a good thing no matter how Wall Street tries to tear down Apple’s value. The Wall Street gamblers can manipulate Apple’s share price but not Apple’s actual revenue and profits.

  2. Not a big follower of technical indicators as a personal buy/sell flag a I am a long term holder of stocks.

    For may money Apple is overvalued relative to what I expect it will be available later this year. I am holding what I have and not buying right now and expect a broad correction at some point later this year.

    Your needs and mileage may vary.

  3. I hate nothing but contempt for market analysts who think they can predict future stock movement based merely on some current stock movement. This approach has about the same accuracy as flipping a coin.
    They think they have identified some rule which will predict future stock movement. I’ve got a rule for them: “In the stock market, just when you think you know the rules, the rules change.”

  4. This lower stock price is because of lower oil prices. But why? Apple does not have anything to do with the oil industry. If anything it should be good news as shipping cost could come down.

  5. I have two friends who day-traded equities heavily based on technical analyses of stock performances. Both had initial success, but both went broke in the long run.

    Technical analysis of future stock performance is based on models. Those models are based on similarities of squiggles on charts. They are highly abstract and pay no attention to real world issues such as the quality of management of companies, product planning and development, technology trends and on and on.

    I subscribe to several financial newsletters, more for amusement than for their actual value for investment purposes. Some are highly pessimistic, predicting a severe market crash at any time. Others are bullish, predicting riches if one invests in recommended categories of stocks or commodities.

    Both perspectives are sometimes right, sometimes wrong. Both advocate buying low and selling high. Neither does a good job of guessing when the lows and highs will occur.

    I’m not about to get into day trading. My IRAs are conservative, long-term investments that have done well over time. As for individual stocks, I pick only companies that I know well, such as Apple, and have done well with those, holding them for no less than a year, often much longer. From one IRA investment of $3,000 dollars made more than 40 years ago I’ve taken out more than $35,000 in cash, yet it is still worth $85,000 today (although I’ve seen big fluctuations over the years.

    Born during the Great Depression, I keep a cash reserve on which I could live for several years. Long-term, I’m an optimist about the market. Short-term, I’m pessimistic. 🙂

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