Will Apple (AAPL) Lose 50% Of Its Value?
There has been quite a bit of news lately that Warren Buffett has been buying a lot of Apple (AAPL) stock. For instance.....
- David Tepper on Apple: Warren Buffett 'made a better trade' than I did
- Buffett Doubles Apple Stake In January
We bought a lot more Apple after year-end," said Buffett in the interview, praising Apple for having a "sticky" product that is "enormously useful" to people who use it.
Fair enough, but we wouldn't be too eager to chase Warren Buffett and buy Apple (AAPL) at this juncture. First, a technical look.
Apple's stock price might be putting in a double top formation. As the chart above suggests, the price surged higher from an incomplete "cup and handle" pattern. Typically, these incomplete patterns suggest upcoming failure. Further, Apple's stock price now has three massive up gaps that the stock price is likely to close in the very near future. They are located at $120, $97 and $75 (from 2014).
Should AAPL decide to close its gap at $75, that would imply a nearly 50% haircut.
Fundamentally speaking, the view expressed here remains nearly fully intact Apple (AAPL) Hits An Important Technical Juncture – What Will It Do Next?
To quickly summarize. Apple (AAPL) is probably one of the best run companies out there. With more cash on its balance sheet than most countries, it is poised to stick around. Yet, the biggest issue remains. Apple's innovative drive, more or less, died with Steve Jobs. We haven't seen any new successful products since then and we are unlikely to see them in the future. Considering the technical picture above, Apple's stock price might be poised to retrace some of its post 2009 gains. Particularity, if the bear market strikes
If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. .