Perhaps Google’s visit to North Korea went better than most of us knew? Reuters is reporting that technicians who study technical stock charts, Apple Inc looks broken. Could this mean that Google’s Schmidt has undermined Apple’s plans to move production from China?
Even though it is widely viewed to be undervalued after hitting an 11-month low this week and nine out of 10 brokerages recommend that investors buy or hold the stock, Apple shareholders could still be in for more rough times if technical strategists are right and if Apple can not solve its labor issues with China’s increasingly vocal workers.
Reuters notes that trading charts show few price points where investors can expect clusters of buying to support Apple’s shares. For example, the stock’s medium-term momentum, based on its 50-day rate of acceleration, has been on a downward slope since March, but has not hit over-sold levels.
On the other hand, one wonders how anyone could believe that Apple staockholders would ever earn enough money to justify the values the stock reached. Can you spell Ponzi scheme?