Apple’s Weak Chart Says It’s Headed to $500

AAPL appears to be struggling for marketable ideas, technicals are bearish

   
Apple’s Weak Chart Says It’s Headed to $500

Apple (AAPL) — This volatile performer was one of our most successful stocks in 2013. I recommended traders short it on Feb. 28 at $440, with a downside target of $500 to $450. I flipped to the buy side on July 9, with the stock near $410, saying, “All shorts should be covered in light of a possible saucer forming.”

On Sept. 27, I set a trading target of $570, and reiterated in on Nov. 27. However, I got it wrong on Dec. 24, when I raised the target to $600.

The stock gapped down on Jan. 28, and the reaction rally terminated on Feb. 14 at $544, far short of our goal. Since then, AAPL has been struggling as it traces its 50-day and failing 20-day moving averages lower.

S&P still favors the stock with a 12-month target of $590. But this senior technology company appears to be struggling for marketable ideas and the chart is weak. Sell AAPL short at $530 with a target of $500 and a stop-loss at $540.

03 18 14 aapl 300x192 Apple's Weak Chart Says It's Headed to $500
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chart key 300x84 Apple's Weak Chart Says It's Headed to $500


Article printed from InvestorPlace Media, http://investorplace.com/2014/03/trade-day-apple-aapl-4/.

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