Apple Bottoming! Get Ready to Buy
by Sam Collins | July 9, 2013 7:20 am
Apple (AAPL[1]) — On Oct. 9[2], 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[3] with a target at $587. We recommended covering shorts on Nov. 7[4], near $570. But on Dec. 6[5], we went short again near $529, and continued to recommend shorting on Feb. 28[6], at $440, and April 25[7], 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.
[8]
- AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
- On Oct. 9: https://investorplace.com/2012/10/trade-of-the-day-apple-nasdaq-aapl-6/
- on Oct. 26: https://investorplace.com/2012/10/trade-of-the-day-apple-nasdaq-aapl-7/
- on Nov. 7: https://investorplace.com/2012/11/trade-of-the-day-apple-nasdaq-aapl-8/
- on Dec. 6: https://investorplace.com/2012/12/trade-of-the-day-apple-nasdaq-aapl-9/
- on Feb. 28: https://investorplace.com/2013/02/trade-of-the-day-apple-nasdaq-aapl-11/
- April 25: https://investorplace.com/2013/04/trade-of-the-day-apple-nasdaq-aapl-12/
- [Image]: https://investorplace.com/wp-content/uploads/2013/05/chart-key.gif
Source URL: https://investorplace.com/2013/07/trade-of-the-day-apple-aapl/