Apple has formed a massive double-top pattern. Ed Ponsi for TheStreet’s Real Money explains why a failing AAPL could mark the beginning of the end this market malaise.
Ed Ponsi for TheStreet’s Real Money:
Apple has formed a massive double-top pattern. This bearish formation has been under construction for 15 months. Using an old-school measuring technique, the pattern suggests that Apple could fall as low as $90. Earlier this week, the stock hit an 18-month low.
I’m long this stock, so it pains me to say this, but maybe a cheaper Apple is exactly what this market needs… I don’t want to spend 2023 watching this market slowly bleed the way it did in 2022. I’m not rooting for Apple to fail, but I am rooting for the end of the bear market in 2023.
Apple is scheduled to report earnings after the close on Jan. 26. The Federal Open Market Committee should raise the Fed funds rate on Feb. 1. We’re about a month away from finding out if Apple will fall like so many of its peers.
If it does, there will be a silver lining. It could mark the beginning of the end of this period of market malaise.
MacDailyNews Take: Charts are nice and “old-school measuring techniques” are cute, but Apple’s share repurchase program, to which an increase of $90 billion was added just eight months ago will have something to say about how low AAPL will go.
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
Ed Ponsi will explain the scheme? Nice.