This Technical Analyst Nearly Brought Apple (AAPL) to Its Knees
Apple (Nasdaq: AAPL) investors were whiplashed Wednesday, and they have Abigail Doolittle of Peak Research to thank for that.
After trading up $10 with a half hour left in the trading session, shares fell of out bed and went nearly flat on the session after Ms. Doolittle was interviewed late Wednesday afternoon on CNBC. She discussed a bearish technical set-up in the stock and suggested shares could now collapse. Shares recovered to end the day, finishing up $7, but not after a lot of damage.
"Apple's run has been impressive... much of it, however, has been on a bearish island reversal, or a potential for a bearish island reversal", Doolittle said. "That's a flee-floating island there. It's likely to reverse back down," she continued.
"It's supported by a gap right there at 577... target 420. Apple looks bearish, and it supports a likely decline in the S&P and spike in volatility on the Vix."
She clearly thinks it's time to take some profits.
"I would look to take profits in Apple," she said "It's hard to judge when this would take place, but maybe in the next three months... Perhaps next week."
All are not convinced that Ms. Doolittle was the reason for the sell-off. Others blamed the weakness on some large block trades around the same time.
Either way, the action suggests Apple investors are nervous as shares rise to nose-bleed levels.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
After trading up $10 with a half hour left in the trading session, shares fell of out bed and went nearly flat on the session after Ms. Doolittle was interviewed late Wednesday afternoon on CNBC. She discussed a bearish technical set-up in the stock and suggested shares could now collapse. Shares recovered to end the day, finishing up $7, but not after a lot of damage.
"Apple's run has been impressive... much of it, however, has been on a bearish island reversal, or a potential for a bearish island reversal", Doolittle said. "That's a flee-floating island there. It's likely to reverse back down," she continued.
"It's supported by a gap right there at 577... target 420. Apple looks bearish, and it supports a likely decline in the S&P and spike in volatility on the Vix."
She clearly thinks it's time to take some profits.
"I would look to take profits in Apple," she said "It's hard to judge when this would take place, but maybe in the next three months... Perhaps next week."
All are not convinced that Ms. Doolittle was the reason for the sell-off. Others blamed the weakness on some large block trades around the same time.
Either way, the action suggests Apple investors are nervous as shares rise to nose-bleed levels.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- Apple (AAPL) Snubs Google (GOOG) in China, Opts for Competitor
- Siliconware Precision (SPIL) Shares Drop on Volatility Spike
- OmniVision (OVTI) Volatility Up on Move Lower
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkRelated Entities
Standard & Poor'sComments
doolittle
This is the same idiot, who, soon after the big reversal day of Feb 15, said that she expected a retracement down to the $480's/470's. Bringing fools like this back onto their programs strain CNBCs credibility
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
AAPL
Paul Henry on Feb 29, 2012 09:59 PMMark as Spam
I'll take those "nosebleed" levels ex-cash of 9x 2013 expected earnings, and a dividend likely to be announced while the stock is underowned according to JPM's chief equity strategist.