Apple Inc. (AAPL): The Next Move Is Down For The Stock

The recent rally has lifted the stock out of oversold territory on the weekly chart, but something that bothers me is that despite the stock’s struggles, the sentiment has remained bullish toward the stock.

The short interest ratio is rather low, at 1.14, and 37 out of 47 analysts still rank the stock as a “buy.”

Only one analyst ranks the stock as a “sell.”

Given the lackluster “new product” announcement Monday and the layers of resistance Apple shares are facing right now, I look for Apple to resume its downtrend in the near future.

I would look to short the stock in the $105-$108 range with a target move down to the $92 level at the very least.

As for a stop-loss point, should the stock close the week above the $110 level, I would look to cover the short.

This article is brought to you courtesy of Rick Pendergraft from Wyatt Research.

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *