- Market Analysis -

February 25, 2010 (FinancialWire) (By Frank Kollar) — Shares of Apple Inc (NASDAQ: AAPL) remain mired in lower to sideways trading since the company’s recent announcement of their highly anticipated tablet device, the new Apple iPad as well as their last quarterly earnings report that posted a huge, better than expected, increase.

Based on the news and earnings, we would expect Apple to be at new rally highs. They are well below their highs, closing Wednesday at $200.66 a share.

Some chart patterns that are of concern are:

Apple shares look like they have had a bearish double top on January 5 and January 19. They did bounce off the $192 level in early February, a level that also held declines back in December 2009. This creates a strong support level. But that bearish double top is worrisome.

Apple shares have broken below a rising trend support line that has held all declines since May 14, 2009. They remain below this support line.

Apple has a huge a loyal following of investors and users. But it will still respond to a bearish close below $192 a share, the February lows, as short sellers have no mercy. Traders should watch this level.

If Apple can close decisively above $205.88 a share, the 61.8% retracement of its January to February decline, it should make a run for its prior $215 highs. But watch that $192 level.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market, his bearish positions resulted in gains exceeding 100 percent. For 2008-2009, his strategy resulted in a 81.9% gain, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

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