“Apple shares bounced around Friday after the debut of its highly anticipated watch, but according to one technician’s chart work, the stock is about to break out to new highs,” Amanda Diaz reports for CNBC.
“‘While the watch itself doesn’t have a spring I’m told, the chart of Apple is wound tight for a big move higher,’ said Evercore ISI’s head of technical analysis, Richard Ross, on Friday’s ‘Trading Nation,'” Diaz reports. “Ross pointed out that the tech giant has been in a well-defined uptrend for many years, but he turned his attention to a coil, or triangle, pattern that has formed over the past few months.”
Diaz reports, “The triangle pattern is important, said Ross, because it’s directional and can be used as a measuring tool.”
Read more in the full article here.
MacDailyNews Take: Forget the “triangle,” what do the entrails say?
[Thanks to MacDailyNews Reader “David E.” for the heads up.]
These guys are like tea leaf readers, looking for patterns in random variations. However, I do like the figure $142.86, which I predicted some time ago we would reach this year.
That is a really good number for me. It puts me at $500,010 in AAPL. Cost basis = $71,400.
puts me at a cool ~1.6M
cost basis ~85K
would prefer the $200 level, tho…..
Some of these “analysts” would feel right at with a career change to astrology. 🙂
Really? The only thing that drives a stock is some shape of a graph? Does the underlying products, services and sales have nothing to do with it? Does stock buyer excitement come into play?
Yes, there are certain trends in the market and if many people believe in those trends then those trends have validity as long as a significant portion of the market players believe in them. There is no overriding ‘shape principle’ of stock markets.
Sadly, the biggest factor in determining the movement of stock prices is not “the underlying products, services and sales.” It has been said by others that 80% of the movement is driven by hedge funds.
I think you actually mean options traders who may be hired by some hedge funds. It might be a good idea to do an internet search on ‘hedge funds’ to get a better working definition.
Hedging is a way of protecting investments from unexpected shifts by buying or selling options and actually stabilizes the markets in most cases.
You’re correct.
80% of movement is driven by shear fear
Are you talking about the “sheeple”?
Sorry, couldn’t resist.
Algorithms chasing algorithms. There was a dufus on CNBC last year who was trying to compare a chart from RCA in the 1920s to AAPL and claimed the patterns were the same, hence looming doom for AAPL!!!
The idea (not that I subscribe to it) is that the chart *reveals* what the market is thinking, not that it drives it. But you’re right, it can be self-fulfilling if enough people believe it.
Oooo Ohh I tot I saw a Twingle!
About 10 years ago when i had a dip in my normal business I spent a year doing technical trading to augment my income. The key word is “trading”. It often has little to do with the underlying business. It is looking for trends in trading patterns that indicate bottoms and tops of major movements in a stock. Technical traders don’t care about companies or products, they look for stock matching patterns for movement up or down and trade in and out opportunistically–making money both up and down. I was able to add $75,000 to my annual income the year I did it, and it paid the mortgage. But it requires some ice in the veins. Thinking about doing it again.
Yes indeed, it takes guts to read entrails.
Ooo, that’s a good one.
Gee ya think Apple stock is going to go up some more? Where to the analysts come up with these ideas.
Entrails? Naw, the triangle is nice but face it most tech and whore street analysts are guys so it goes that the hemline delusion is the one to go buy. Hemlines are going to be short this spring.
Analyst is wrong again. It’s 142.85714286 or 1,000/7
She’s right in one way. Apple usually breakout of a holding price, goes crazy up for a while and then settles down again.
Those with guts and money try to predict the ups and down to make more money. Others (namely the brokers) buy in when its low and then convince their clients to buy to pump the stock up.