Why Bernanke Can't Get Apple Off His Mind

April 8th, 2013

by Chris Kimble

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

The highs of 1983 and 1987 impacted Apple almost 30-years later. If you tie those highs together and create a resistance line into the future, that line stopped Apple on a dime last year at (1) in the chart below.

If you create a parallel line of the 30-year resistance, it now comes into play at (2) below, as Apple is attempting to break this important line. This is a monthly chart and the end of the month is a long way away! To get back above this important resistance line, Apple needs to close above $448 at the end of this month. If not, this support line will have been taken out.

The next parallel support line price point for Apple comes into play around $200 per share.

What happens with Apple becomes all the more important for the Nasdaq 100 below, which may have created a near perfect technical Head & Shoulders topping pattern.

Apple needs to hold here and get back above the $448 resistance level or it could pull both the Nasdaq 100 and S&P 500 lower, which would increase the odds that an important top is in.

Can Ben's QE to infinity and beyond solve Apple's challenges at this 30-year line? Don't overlook what selling pressure in Apple and the Nasdaq 100 could do to key market indexes despite Ben's monetary policy!

For information about Kimble Charting Solutions, send an email to services@kimblechartingsolutions.com.

Website by the Boston Web Company