AAPL: Another Parabolic Breakdown


Apple, Inc. (AAPL) is nothing if not repetitive. AAPL experiences frenzied, parabolic advances that are followed by equally dramatic corrections. This has happened no less than three times in the last 11 years with an average correction of -48%. Now it appears to be happening again, as price has recently broken down through the most recent parabolic arc. To me the most obvious downside target is about 127, a decline of about -45%. As a technical target it looks reasonable, and it falls in line with the magnitude of previous corrections.

Caveat: This is a monthly chart and the last bar won't be final until the end of this month. But wait, you say, the parabolic arc has been broken! This is true, but before the end of the month price could reverse upward and take out the recent all-time highs, at which point I would have to redraw the arc to accommodate the recent decline. Nevertheless, given information I have right now, my belief is that AAPL, already down about -15%, is headed for a substantial correction.

Happy Charting!
- Carl

Technical Analysis is a windsock, not a crystal ball.

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Carl Swenlin
About the author: is a veteran technical analyst who has been actively engaged in market analysis since 1981. He was the founder of DecisionPoint, one of the web's premier market timing and technical signal services, which was acquired by in 2013. Carl has contributed his market commentary and expert analysis to StockCharts since then. He is a Member of the CMT Association. Learn More
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