This is for my golf buddies who have been talking about Apple Inc. each time we met. Question remains, Apple has fallen so much, time to bottom fish especially when the broad market is moving higher? I have not been following the fundamentals but one thing for sure, as long as Apple is playing catch up instead of being a market leader with the cutting edge technology, I can't be convinced to commit to a recovery story just yet. Just logically speaking, when Steve was really ill and subsequently passed away on 5 Oct 2011, price was consolidating between $360 to the $410 level (circled). If the new management cannot convince investors they have the foresight and ability to lead the company to stay on top of the game, what can convince us that price can hold above that level then. The post Steve Jobs rally is over and price should subsequently fall back into the circled range, if not lower, and await for positive development.
Technically
Short term: Indicators are suggesting a near term bounce as downside momentum starts to wane. Short term range $420 - $470. No technical signals of a major trend reversal at all at this stage.
Longer term: Trend indicators have all point to a major bull trend reversal and one should expect this to last for awhile as market needs to consolidate after the parabolic rally (burst bubble). The fast money is over as Apple slows down its descent. I expect further pressure after this short term rebound into the $360 - $410 range where it should then be ready for stronger rebounds within a wider consolidation. $330-350 should provide solid support and $500, solid resistance.
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| Apple Inc. Monthly chart - Still searching for a bottom |
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