(No)Technical Analysis for AAPL

May is usually a very interesting month. Projected expenses of professional traders and hedge fund managers are very high during the summer, like for example fuel cost for yachts has increased substantially and rents of summer houses in the Hamptons are skyrocketing. It is therefore very likely that the market will move during this period in such a way as to transfer the most from uninformed speculators to professionals . What about AAPL?

In my opinion anyone who is trying to come up with a technical forecast by analyzing AAPL charts lacks understanding of this art and science. Technical analysis can under certain circumstances provide some insight into future price moves for normal trading conditions. In the case of bubble markets and parabolic or vertical price moves, like in the case of AAPL, the only concept from technical analysis that may have some application is Fibonacci retracement levels. Actually, these levels serve as possible support areas and should not be used for initiating or adding to positions but only for exiting or reducing existing  positions.

On the daily AAPL chart above we may see that the first major Fibonacci retracement levels of 38.2% is near $536. The 50% level is near $503. This analysis applies to the trend shown on the chart.

That’s all for AAPL folks. Do not expect me to offer a technical forecast please. Only those who lack understanding of technical analysis will attempt at this stage to provide a forecast. Anything can happen because this market is at a state not analyzable using technical analysis.

Disclosure: no relevant positions.

Charting program: Amibroker (Charts created with AmiBroker – advanced charting and technical analysis software. http://www.amibroker.com/”)


This entry was posted in Technical Analysis and tagged , . Bookmark the permalink.