Little Reason For Optimism In Apple's Short-Term Chart

With Apple Inc AAPL set to release Q4 earnings this week, there’s been a growing level of concern in the market about the company’s short-term technical breakdown.

After hitting new all-time highs of nearly $133 in early 2015, Apple has failed to regain its bullish stride. In fact, the stock has dipped into the low $90s twice since then and appears to be heading into earnings more than 30 percent below last year’s highs.


One look at the stock’s one-year chart provides little cause for optimism. It’s hard to miss the broad bearish head and shoulders pattern that has formed in the chart in the past year. Until it can push back above its $123 November peak (and break out of the head and shoulders pattern), the stock’s short-term technical picture looks extremely bearish.

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For now, Apple bulls are hoping that the low-$90s support that held twice in the past six months will continue to serve as the bottom of Apple’s trading range. However, a break below that level could mean significant downside to Apple’s stock in the near-term.

Disclosure: the author holds no position in the stocks mentioned.