Research Excerpts

AAPL Meets Our $420 January Downside Target

Posted on: Wednesday, March 13th, 2013

In our January 14th blog posting, entitled Recent Price Action Suggests AAPL Has Worms, we said that “a recent major bearish trend change in AAPL (Apple Computer) clears the way for another eventual 19% decline to the next support level at $423 to $405 per share.” APPL closed at $502 that day.

Here is the graphic from that blog posting, which actually was an excerpt from our January 10th US Financial Market Chart Book.

“Chart Book”, one of  8 different reports that we produce for subscribers throughout the month, is a collection of key charts and data that collectively convey our best investment ideas for the next one to several months in the US stock market and sectors, US interest rates, the US Dollar, and in economically influential commodities and includes a 20-25 minute video.

More recently, in our January 24th premium report entitled AAPL: How Low Can You Go? (access requires subscription), we pointed out a breakdown from a newly-formed chart pattern, a triangle, that targeted a 7% decline to $420 — which was right in the midst  of the $423 to $405 band of support that we pointed out in our January 10th Chart Book and January 14th blog posting.

Here is one of the charts from that January 24th report.

AAPL met our $420 target on March 4th to capture a 104 point, 20% decline since our initial bearish call was made in our January 10th US Financial Market Chart Book.

Looking ahead, meaningful rebounds in the price of an asset often occur from underlying support levels, once existing downside price targets have been met, which is precisely the environment that AAPL finds itself in now.

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