The Arora Report published a “sell” signal on Apple’s stock before the iPhone 8 and iPhone X launch.
At the time, Apple AAPL was trading around $164. Please see “Investors who recently bought Apple’s stock should consider locking in profits.”
Now that that call has proven to be correct, I am being asked by investors: “How low will Apple go?”
Let’s explore that question with the help of two charts.
Please click here for a short-term chart of Apple stock.
Please click here for a long-term chart of Apple stock.
Please note the following from the charts:
• The short-term chart shows the gap that occurred after Apple reported blowout earnings.
• In traditional technical analysis, gaps are often filled. If traditional technical analysis holds, Apple stock may fall to about $148.
• With the widespread availability of technical analysis, it no longer works as well as it used to back in 1970s and ’80s.
• The “smart money” tries to game the technical analysis. In practice and in plain English, it means that some smart players are likely to start aggressively buying well above $148 and put stops under $148.
• If Apple’s stock goes lower, some smart player knowing that there are stops under $148 may try to push the stock down by short-selling to take out the stops.
• Please note from the chart that RSI (relative strength index) is now oversold…Read more at MarketWatch
You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES.