Rich Ross Is Bearish On Apple

Rich Ross of Evercore ISI shared on CNBC's Trading Nation his technical analysis of Apple Inc. AAPL.

He identified a head and shoulders pattern on Apple's chart and concluded that the stock has broken the neckline of the head and shoulders pattern. Ross believes that trend has changed for the stock and it is now in a short-term and intermediate-term down trend, because it fell below the 200-day moving average in August and it failed to jump above it in November.

Ross thinks that Apple might decline to $72 and he calculated this price level by deducting from the neckline, which stands at $102, a difference between the top of the head and shoulders pattern and the neck line. He added that at a minimum the stock might fall to low $90s.