This Technical Analyst Nearly Brought Apple (AAPL) to Its Knees
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Price: $310.20 -0.15%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
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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.
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.
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