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

by Sam Collins | March 19, 2014 1:41 am

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

Apple (AAPL[1]) — This volatile performer was one of our most successful stocks in 2013. I recommended traders short it on Feb. 28[2] at $440, with a downside target of $500 to $450. I flipped to the buy side on July 9[3], with the stock near $410, saying, “All shorts should be covered in light of a possible saucer forming.”

On Sept. 27[4], I set a trading target of $570, and reiterated in on Nov. 27[5]. However, I got it wrong on Dec. 24[6], 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 Apples Weak Chart Says Its Headed to $500
Click to Enlarge

chart key 300x84 Apples Weak Chart Says Its Headed to $500[7]

Endnotes:
  1. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  2. on Feb. 28: http://investorplace.com/2013/02/trade-of-the-day-apple-nasdaq-aapl-11/
  3. on July 9: http://investorplace.com/2013/07/trade-of-the-day-apple-aapl/
  4. On Sept. 27: http://investorplace.com/2013/09/trade-of-the-day-apple-aapl-4/
  5. on Nov. 27: http://investorplace.com/2013/11/trade-day-apple-aapl-2/
  6. on Dec. 24: http://investorplace.com/2013/12/trade-day-apple-aapl-3/
  7. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2014/03/trade-day-apple-aapl-4/
Short URL: http://invstplc.com/OtZk4s