Apple Inc. shares are down another 2% as investors assess many issues. Locking in gains at 15% after fortunes have been made is only one part. The new tax regime and its impact on consumer spending will be an issue, going forward even for Apple.

Jeff Gundlach, head of Doubleline Capital, says he is short Apple shares. Mr. Gundlach said that downside could be all the way down at $425 because that is the level that the stock just went parabolic from earlier this year. If Mr. Gundlach is right then Apple has more than 20% more downside to it. Gundlach accused Apple of no longer releasing new innovative products.

Shaw Wu of Stern Agee maintains his Buy rating and said, “We continue to believe that AAPL is positioned to outperform in this tough macroeconomic environment with its defendable strategic and structural advantages and its vertical integration. Our price target of $840 assumes what we think is a reasonable and conservative 14X multiple on our Y 2013 EPS plus net cash.”

Just Wednesday it would have taken over $105-B in investor inflows to get Apple back to its prior high above 700/shr. That is even more today. The drop of over 2% today to 546 is really only the lowest price since late in May. It is also important to realize that even after a drop of more than 150 pts that Apple’s stock is still + 36% since the end of Y 2011.

After Apple broke its 50-Day Moving Average in early October, it has not traded well. It broke its 200-Day MA last week. Those levels as of now are 645.21 on the 50-Day and $588.89 on the 200-Day MA, but these change daily.


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Analysis Overall Short Intermediate Long
Bearish (-0.47) Very Bearish (-0.69) Bearish (-0.37) Bearish (-0.35)

Recent CandleStick Analysis Bearish
Date Candle
6 Nov 2012 Bearish Engulfing

Open Gaps
Direction Date Range
down 7 Nov 2012 580.09 to 574.54
down 18 Oct 2012 644 to 642.06
down 8 Oct 2012 651.28 to 647.56
down 26 Sept 2012 673 to 672.69
down 24 Sept 2012 699.36 to 695.12

Support and Resistance
Type Value Conf.
resist. 701.39 3
resist. 679.99 2
resist. 673.24 3
resist. 660.59 2
resist. 648.89 10
resist. 627.45 3
resist. 615.92 5
resist. 598.90 2
resist. 587.78 6
resist. 580.75 4
resist. 574.49 3
resist. 567.28 4
resist. 560.99 2

Technical Indicators
Ind. Short Inter Long
EMA VBe VBe VBe
MACD VBe Be VBe
RSI N
TDD Be
Fibs VBe VBe Be
Highs Be N Bu
Lows Be N N
Trends VBe N N
Stoch. VBe
VBu=Very Bullish, Bu=Bullish
N=Neutral
Be=Bearish, VBe=Very Bearish

 

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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