Sunday, November 4, 2012

Apple stock gives another negative signal


“As though Apple stock needs more trouble, Thursday, Apple traced out another dreaded pattern,” Nigam Arora writes for MarketWatch.



“Even though Apple is the leading stock with the heaviest weighting in Nasdaq 100, underperformance of Apple on a 15-minute chart is remarkable,” Arora writes. “According to traditional technical analysis, when a leading stock drastically underperforms its benchmark index, it is a negative signal.”



Arora writes, “Unfortunately, in the world of investments, there is nothing that is black and white. Technical patterns do not always work. On the positive side, Apple stock is oversold and due for a bounce. Further, there is reasonably strong support in the zone of $548 to $567. From a fundamental perspective, the fourth quarter is the strongest quarter for Apple. At this time, Apple stock is like dry tinder; the tiniest spark on the positive side may make the stock explode on the upside.”



Read more in the full article here.


No comments:

Post a Comment