Friday, November 9, 2012
Apple is doomed like Microsoft of 2000? Get out of it at this last leg rally to USD 600-640
Microsoft in the tech boom of 2000 was the market darling. It could do not wrong at that time and was targetted to be the first trillion company but post 2000,it broke down and never recovered past its all time price since.
Apple looks like following Microsoft's path. Despite the Iphone 5 and Ipad success, the share price after touching USD 700 has broken down sharply. Key support at USD 600 was taken out too. Now after touching a interim low of USD 530 or so, I think it is ripe for a short term rally.
However, this short term rally is probably finishing off a massive head and shoulder top reversal move. This is the last leg or right shoulder move which should bring price up to USD 600 to USD 640 potentially.
Sell your holdings if it does move to the USD 600-640 price level for the next leg down will probably be cruel.
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