What’s the word on Apple (NASDAQ:AAPL) stock? Does anyone really know? Even Jim Cramer, CNBC’s host of “Mad Money,” is confounded. Analysts have been eyeing Apple shares all year, taking note of a consistent rise in the last six months, but many experts now offer differing predictions as to whether Apple will continue its upward ascent or fall in the way that many other successful public companies have.
Apple has especially been in the spotlight this year ever since it launched not one, but two new smartphones in September, and did the same with the iPad in October. Couple that with an impending deal with China Mobile and you have a company that looks stronger than ever, but all analysts are not so easily convinced. CNBC reminds us that Apple shares have only risen 6 percent for the year, and the stock has been known to be volatile. Cramer posed the age-old Apple question to not one, but three stock technicians on his show, Mad Money, Tuesday night, and each expert offered his or her own opinion, supported by evidence. These experts recognize how valuable past chart patterns can be to effective tech analysis and they all employed their own strategy in some way.
First up was an analysis from Bob Lang, the founder and senior strategist at ExplosiveOptions.net. Lang made his Apple forecast based on the moving average convergence divergence indicator, and explained that with the Cupertino, California-based tech giant, technical analysis would forecast that Apple will enjoy a stock gain into the end of the year. This is because the MACD has been in positive territory since Apple shares started rising in September, and it just made a bullish crossover. The relative strength index is in positive territory, suggesting that Apple has enough momentum to regain its position as a market leader.