How Apple Hits $70s In 1 Chart

In a new post, Slope of Hope contributor Tim Knight points out why he believes Apple Inc. (NASDAQ: AAPL) is headed lower following this week’s Q4 earnings report and could eventually dip below $75.

Knight included the following chart in his piece, which includes a giant shaded head-and-shoulders pattern, an extremely bearish technical topping pattern. He sees this pattern as an indication that the risk is currently to the downside for Apple.

“I suspect that Apple is more likely to be down on Wednesday than up,” Knight wrote. “I further think that, in the months ahead, Apple is going to find itself at a place no one dare imagine: in the 70s.”

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

Knight compared his bearish feeling about Apple to his bearish predictions about oil in late 2014. If the head-and-shoulders pattern continues to play out, he predicts that Apple likely won’t find significant support until it has pulled back nearly 50 percent from its all-time highs and into the low $70s.

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