Apple May Fall Another 20% on 'Panic Selling': Analyst |
| CNBC - Dec 6, 2012 |
Apple's stock is up Thursday, but the recent selloff may be far from over.
Extraordinary volume during the stock's plunge this fall signals another 20 percent decline is still ahead, a top chart analyst on Wall Street says. (Read more: Apple Defies 'Death Cross')
"Along with the two volume 'spikes' cited in my Nov. 16 note, yesterday (Wednesday) was another volume 'spike' day on the downside suggesting that the $528 support area will in fact be decisively broken on a closing basis over the near-term," said John Mendelson, technical analyst for ISI. "My view continues to be that because the stock ran up so fast last spring, the next significant support area is $420."
Technical analysts like Mendelson, who was ranked 19 times in that field by Institutional Investor magazine over his long career, often look at volume to gauge changes in supply and demand for a stock. In this case, because the heavy trading is occurring as Apple is falling, it may be signaling a mass, ongoing liquidation as the year comes to a close.
Read Full Article from CNBC
- Posted: 2012-12-06 14:23:56
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
