Apple: Bearish To The Core

PUBLISHED: Oct 08 2012 @ 15:27 | Comments (0) |

There is no poisonous fundamental argument to accompany the technicals here at Apple (NASDAQ:AAPL), and no being contrarian for the sake of it. There is not even the comment that after iPhone 5 the market is in one of those “it is better to travel than arrive” positions as far as Apple is concerned. It also seems best to shy away from laughing at the Apple Maps app, or its counterproductive spat with Samsung, which really should be classed as beneath the dignity of the world’s most valuable company.

Instead, I am sticking to the charting argument here, with the key point being the loss of the key $656 initial intraday September low. While there is no call for a massive decline on Apple shares while below $656 on an end of day close basis, the risk is that a sub $580 retest of July support will be seen. That said, even at this stage such a dive would probably be the most bearish scenario on offer even in the wake of the August – October head & shoulders reversal pattern here.

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