CNBC’s Jim Cramer can be such a passionate supporter of the stock of Apple that will, sometimes, even he knows the idea’s worth getting a second opinion. So, on Tuesday, he got technician Carolyn Boroden’s take.
After inspecting Apple’s charts, Boroden, who runs FibonacciQueen.com along with also also can be Cramer’s colleague at RealMoney.com, arrived on the scene “cautiously optimistic” on the stock’s near-term future, Cramer said Tuesday.
“Her diagnosis? She thinks that will Apple could soon be ready to rebound, … perhaps even climbing back to fresh highs,” the “Mad Money” host said.
Shares of Apple have been under pressure since the company’s earnings report last week, in which the iPhone maker announced that will the idea would certainly no longer break down individual product performance along with also also issued softer-than-expected guidance. Apple’s market cap has since slipped under the $1 trillion level.
To figure out where Apple’s stock could go next, Boroden used the concept of symmetry. In her 31 years of technical analysis, she has noticed that will stocks tend to follow patterns when they decline or rally. For example, if a stock tends to bottom after falling 10 basis points, there’s a Great chance the idea will bottom after future 10-point declines.
On Tuesday, she paired that will with her different signature method: running a stocks past swings through Fibonacci ratios — numerical sequences that will repeats throughout nature — to find key support along with also also resistance levels for the stock.
“When you do This particular with Apple, you find two zones. There’s a potential floor of support running coming from $196 to $198, along with also also another one lower running coming from $186 to $192,” Cramer said. “If the rally in Apple can be going to resume, Boroden says that will, ideally, we want the stock to hold somewhere between that will first floor of support.”
Boroden also used This particular method to find out when Apple’s stock was likely to change course. She found 5 Fibonacci time cycles all coalescing This particular week, meaning Apple’s stock could “make an important low” during the week, Cramer said.
“Apple incorporates a powerful floor of support here. If that will floor holds, Boroden believes the stock will quickly find its footing along with also also go right back to rallying,” the “Mad Money” host said. “As long as we don’t violate the recent lows, she thinks Apple can potentially zoom to fresh highs — she thinks the idea could go to [the] $243 area.”
However, if Apple’s stock trades below its floors of support, the technician warned her thesis would certainly unravel.
“The bottom line? The charts, as interpreted by Carolyn Boroden, suggest that will Apple might not have much more downside before the idea bottoms, along with also also that will, likely, the idea bottoms sometime This particular week along with also also then starts climbing again,” Cramer said. “As for me, I think the idea’s too hard to trade in along with also also out. that will’s not my thing. Apple’s a great company having a cheap stock along with also also I’d be a buyer here, because, given the size of the company’s buyback, I’m confident Apple will be buying right alongside you.”
Shares of Apple closed up 1.08 percent on Tuesday, at $203.77 a share. The stock rose slightly in after-hours trading, though was still shy of the $1 trillion market-cap level the idea reached in August.