By Jeff Pierce
My target for Apple was sub $400 many months ago, and more specifically near the $387 range (although not for any Fibonacci level), I just found it interesting that the 50% retracement mirrored that level. And it may take a flush out event to cause some bulls hanging on to capitulate. That could set the stage for a more sustained rally in Apple. I’ve been bearish on this stock for many months and I think now is the time to switch to a more neutral stance and even possibly a bullish outlook.
Apple is still a monster from a commercial sense and don’t let the last 4 months define this stock. As you can see the uptrend is well intact and could easily fall to the 61.8% level and still not break the uptrend although I don’t think it will fall that much. I don’t think it’ll break $360 but if it does it’ll be only intraday and I would wager it would rebound a significant amount of that intraday selling by days close.
They report after the bell on April 23rd. If it continues to be depressed until then, and has an initial selloff, then that could bring the buying opportunity many have been waiting for.