Apple Bottoming! Get Ready to Buy

A close above the resistance line at $465 would signal that a long-term bottom has finally been established

   
Apple Bottoming! Get Ready to Buy

Apple (AAPL) — On Oct. 9, the Trade of the Day stated that from a technical perspective Apple should be sold with a downside target of $605: “Despite reduced trading volume due to Columbus Day, enough sellers surfaced to drive the stock’s price through the neckline at $655 on a breakaway gap. This is a classic breakdown — it just doesn’t get any clearer than this.”

The sell opinion was reiterated on Oct. 26 with a target at $587. We recommended covering shorts on Nov. 7, near $570. But on Dec. 6, we went short again near $529, and continued to recommend shorting on Feb. 28, at $440, and April 25, on a bounce to $436.

Now, however, it is clear that all shorts should be covered in light of a possible saucer forming. A close above the resistance line at $465 would signal that a long-term bottom has finally been established.

Apple is expected to earn $41.04 in fiscal year (FY) 2013, ended in September, and the consensus earnings estimate for FY 2014 is $43.59. The mean price target has been increased to $538 from $500, and those willing to take a longer-term perspective may buy Apple with a stop-loss order at $390, below the April low.

07 08 13 aapl 300x187 Apple Bottoming! Get Ready to Buy
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chart key 300x84 Apple Bottoming! Get Ready to Buy


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/trade-of-the-day-apple-aapl/.

©2014 InvestorPlace Media, LLC

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