Home > charting trendlines > AAPL breaks trendline support

AAPL breaks trendline support

I have long disliked AAPL as a stock.  It has climbed and climbed despite my dislike.  It’s not that the company isn’t good.  In fact, it’s great.  It makes brilliant products.  Its marketing is sheer genius.  If all companies were valued equally, I would love to be an owner of AAPL.

As it happens, AAPL is so well run as a company that its stock demands a pretty hefty premium.  That premium is well-earned, as AAPL has consistently beaten expectation.  Unfortunately, that kind of success never does continue ad infinitum.  Even great companies eventually slow – and ones with singular charismatic leaders have an especially strong liklihood of doing so (once that leader is gone).   And so I’ve been of the belief that AAPL is priced for perfection.  And perfection is never achieved.  So I viewed AAPL as having significant downside.  I’ve been very wrong for quite a while on that count.

However, at least in the short term, AAPL appears to have weaker days ahead.  It has decisively broken under trendline support.  Typically, this leads to further weakness.

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