“Although it might seem outrageous,” Apple (AAPL)’s stock could open up on Monday, ‘Market Studies’ CEO Tom DeMark, who called for Apple bottom on January 15th, said Friday on CNBC.
“If you look at Apple’s entire decline, the most number of consecutive down days has been three”, he said on Fast Money.
On Dec. 14, AAPL had three consecutive down days before reversing to the upside. On Dec. 21, same thing happened, three consecutive down-closes were followed by the stock trading sideways.
On Friday, Apple shares, which have lost more than a quarter of their value since peaking in Sept. 21 at $705, posted again three consecutive days of losses, which DeMark noted were within “a very narrow trading range.”
“That typically is indicative of a market turn,” he said, adding that “it would not be outrageous to expect a gap up on Monday”
“We could turn to the upside on Monday and produce an island reversal,” DeMark said.
AAPL this morning is down 62 cents, or 0.14%, to $453.00 in pre-market trading / 7:35 a.m. EST – Nasdaq Real Time Quotes.
Full DeMark clip