Time for Traders to Toss Their Apple Shares

by Sam Collins | September 17, 2013 1:41 am

Apple (AAPL[1]) — On Aug. 7, I said[2], “Apple stock has rallied close to its 200-day moving average at $474, where traders may be wise to nail down a profit. However, the stock appears capable of completing a long-term reversal from a saucer formation that could prove very rewarding for patient Apple investors.”

However, since then, analysts have revised earnings downward. The consensus estimate for fiscal 2013, ended in September, is $39.12 per share, down from $44.15 in fiscal 2012. And although the average estimate for fiscal 2014 is $42.50, some are indicating that this might be revised lower as well.

Technically, AAPL appeared to be establishing a bullish saucer formation. But the recent gap down from a double-top and the stock’s failure to hold above its 50-day moving average are not good signs. Thus, it’s best to sell Apple and wait for it to stabilize above its July low of $389 before exploring new positions.

09 17 13 aapl 300x197 Time for Traders to Toss Their Apple Shares
Click to Enlarge

chart key 300x84 Time for Traders to Toss Their Apple Shares[3]

Endnotes:
  1. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  2. I said: http://investorplace.com/2013/08/trade-of-the-day-apple-aapl-2/
  3. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

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