Wednesday, February 20, 2013

Why you need to sell Apple...

The overly inflated, and overly hyped Apple stock ($AAPL) has seen better days. The competition is creeping up on this company at a faster rate than they'd like. Apple stock is overbought, simple as that. As of this time of writing the stock is still trading at a whopping $451.69. I drew a chart down below to explain why I think the stock price of Apple is going down even further. There is severe bearish pressure, from a technical standpoint alone; you can see that the stock price is trying so hard to keep it above $450 without much success. From a fundamental point of view; there are so many companies that meet (or even exceed!) Apple's products. For instance Samsung with their superior version of the iPad.
Don't get me wrong, I love Apple - in fact I only have Apple products in my house, but I've also seen what the competition has to offer. For the past few years, especially last year it's been noting but a bull run for Apple, that has to come down eventually and ever since it his the $650 area, it's been going down (with almost $200 in a matter of not even six months!) If you own it; dump it! If you don't, short it! There's some serious money to be made in $AAPL!

Apple ($AAPL) stock price visualized on a chart with a so called 'Pitch Fan'. You can see that Apple's stock price drops through all the support levels (click image for a bigger chart).

Disclaimer:

All opinions expressed, trade recommendations/advice on this website are solely of John van der Munnik and are not affiliated with any investment firm or any other organization. You should not make an investment only based using this website VDM Trading for your trading needs without seeking help from your own financial advisor.