Where Apple Might Break to Next

AAPL could be in the midst of a bullish reversal, but keep one eye on this low mark to protect yourself

   

Despite a decline of almost 40% from its September 2012 high, Apple (NASDAQ:AAPL) is still one of the most successful technology companies on earth. Its very substantial cash position and growth well above its peers make it a compelling value at current prices, and analysts project continued growth for iPhones and iPads to continue through 2015. Fundamental analysts have a mean 12-month target of over $600 for Apple — roughly 40% better than current prices.

Technically, AAPL broke above both its bearish resistance line and 50-day moving average in March and so has finally broken sideways from a six-month decline. Long-term investors should buy and hold Apple, and traders could see a quick pop to the trading gap between $505 and $556.

AAPLtestingsupport 300x198 Where Apple Might Break to Next
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Today, the stock slightly broke yesterday’s low of $427.74 but reversed and is testing yesterday’s high of $443.70. A close under the support line at $420 would confirm that the downtrend is intact and stop-loss orders should be placed just below that line. However, a close above the recent high of $463.58 would confirm that a bullish reversal has occurred.


Article printed from InvestorPlace Media, http://investorplace.com/2013/04/where-apple-might-break-to-next/.

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