Mike Harris: The Apple Charts Aren't Working Here

The technician and blogger Michael Harris of Price Action Lab has an interesting take on the Most Important Stock on Earth…

In my opinion anyone who is trying to come up with a technical forecast by analyzing AAPL charts lacks understanding of this art and science. Technical analysis can under certain circumstances provide some insight into future price moves for normal trading conditions. In the case of bubble markets and parabolic or vertical price moves, like in the case of AAPL, the only concept from technical analysis that may have some application is Fibonacci retracement levels. Actually, these levels serve as possible support areas and should not be used for initiating or adding to positions but only for exiting or reducing existing  positions.

I have technician friends who will agree with this but several whom I know will not.  It is a function of convinced they are of their own dogma.

In the meantime, it’s very refreshing to hear someone admit out loud that their discipline may not apply to a particular situation from time to time.

Source:

(No) Technical Analysis for Apple (Price Action Lab)