Apple Inc. (NASDAQ: AAPL) was trading higher by more than 4% after earnings in the premarket trading session on Wednesday. Shares are up around $439 after closing at $418.99, but a technical analyst has issued a research report from BofA/Merrill Lynch saying that a technical bottom has not been found and that Apple is in a technical no-man’s land on the Apple stock chart.

Wednesday’s research report based on the chart shows that Apple’s stock price is consolidating within the downtrend that began late last September and does not yet have a confirmed bottom in place. The report says:

In order to confirm a bottom, AAPL needs a decisive push above chart resistance at the March/May highs in the $465-470 area, preferable on higher volume. Until then, the downtrend from last September remains intact. Nearby cloud resistance for today is $426 to $439 – above that would be a step in the right direction. The April/June lows provide key support at $390 to $385, but should Apple gap up above yesterday’s $426.96 high, this gap becomes an initial support that is important to hold. A failure to hold an opening upside price gap would provide a bearish signal.

Apple’s chart is then shown on a daily cloud resistance basis for Wednesday at $426.79 to $438.60:

A break above this resistance would be a step in the right direction and a positive signal. If Apple should move above the daily cloud, we would look for confirmation of the lagging line moving above the cloud as well but this could take time.

Here is a snapshot Apple charts below from BofA/Merrill Lynch report:

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