This morning Nomura lowered their price target on Apple (AAPL) from $295 to $225 and maintained a neutral rating on the stock. Let’s see what the charts tell us.

 

Apple (AAPL) Weekly Chart – annotations by askSlim.com

At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

 

askSlim.com Technical Briefing: The weekly cycle analysis suggests that AAPL is in the late stages of a declining phase and is due to form an intermediate-term low. The next projected intermediate-term low is due in the end of March. Weekly momentum remains negative.

 

On the upside, there is an intermediate-term Fibonacci resistance zone from 256.63270.23. On the downside, there a lower Fibonacci support at 221.53 followed by cycle low support at 192.58. Our analysis suggests that for the bulls to regain control of the intermediate-term, we would likely need to see a weekly close above 283.83.

 

askSlim.com Sum of the Evidence: AAPL is due to form an intermediate-term bottom and has negative weekly momentum. Given these conditions, we would expect any sell offs in the near-term to be limited to the weekly support zone beginning at 221.53. There is a likelihood that the stock tests 256 by mid-April.

 

 

Interested in askSlim.com?

Get professional grade technical analysis, trader education and trade planning tools at askSlim.com. Write to matt@askslim.com for special askSlim membership trial offers!