Apple's CEO may be defending its business model in court, but on paper and on the graph, Apple is faring very well. However, the market dynamics doesn't care much about fundamentals when it cones to cycles. Forming a Bollinger Bang squeeze at the weekly chart, the squeeze is about to release the tension the coming week. To determine whether this would drive the price up on down, I took the following criteria into consideration:
The price target is 108 in acouple of months, but the price will get a bit lower first. My forecast is that this is a good short-term sell opportunity.
- Candlestick patterns of the current range are bearish biased with long wicks on the top. There's a clear Evening Star at the top most price, usually indicating a reversal int he trend.
- Fibonacci retracements indicate that we are exactly at the edge of a major resistance, the second extension level.
- The market, speciall NASDAQ, is about to have a cyclic correction as well.
- Fundamental events have nothing to do with this but of course analysts will attribute the downturn to the court saga.
The price target is 108 in acouple of months, but the price will get a bit lower first. My forecast is that this is a good short-term sell opportunity.
