Saturday, January 9, 2016

AAPL Apple Weekly Chart Under 100 Bear Market H&S Pattern Lower Band Violation

Apple has collapsed on anecdotal evidence that production of products is decreasing. The rumors prove true. Production lines for Apple products are cutting back and sales may drop. AAPL plummets -8% to begin 2016. Apple peaked at 132 so a -10% correction is 118.80. A -20% bear market is 105.60. Apple is officially in a bear market. At 96.96, AAPL is down -27% off the top and collapsing at a pace of -4% per month since last summer. Comically, the analysts are downgrading their Apple prices like maniacs but most remain with price targets above 120. Pause for laughter.

The red H&S is in play with the Quasimodo four-headed monster peaking in Feb-July of last year. Keystone forecasted the top at hand last summer which dumbfounded other analysts; the same analysts that are scrambling in disarray right now wiping egg from their faces. Money managers have placed Ma and Pa's hard-earned money into Apple stock guaranteeing returns but now will not answer the phone as the office is flooded with telephone calls form investors panicking at seeing their savings collapse.

The neckline rupture at 103-ish. The H&S downside target is 74 in that area of congestion from late 2013 early 2014. As mentioned in a previous chart, it would not be surprising to see Apple finish the year in the 60-90 range. Price is due for a dead-cat bounce in the near-term. Price needs to get under the August low to sort things out. The daily chart was setting up to bounce price but last week things fell apart as the weak production data started to beat the stock with a baseball bat. Apple needs to bounce but the chart is broken and the stock looks broken. There is no reason to play Apple unless a nice recovery bounce occurs since any rally can likely be shorted going forward.

The Apple monthly chart is weak and bleak so on a monthly basis lower lows in price are expected, say at least for the first one-half of the year. Price will need to back kiss the neckline failure at 103-ish during the days and weeks ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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