Take a Shot at Apple Now

by Sam Collins | September 27, 2013 1:32 am

Apple (AAPL[1]) — On Aug. 7[2], I said, “Apple has rallied close to its 200-day moving average at $474, where traders may be wise to nail down a profit. However, the stock appears capable of completing a long-term reversal from a saucer formation that could prove very rewarding for patient Apple investors.”

On Sept. 17[3], I said, “Technically, AAPL appeared to be establishing a bullish saucer formation. But the recent gap down from a double-top and the stock’s failure to hold above its 50-day moving average are not good signs. Thus, it’s best to sell Apple and wait for it to stabilize above its July low of $389 before exploring new positions.”

Since then, analysts have revised their fiscal 2013 (ended in September) earnings estimates to $39.35 from $39.17, and fiscal 2014 earnings to $42.90 from $42.53. This has created the chart base and stability that I had hoped for.

The bullish saucer formation has continued to develop, a golden cross has formed, and MACD triggered a buy signal. The final bullish signal would be for AAPL to close above the resistance line at $500, but those who wish to take a modest risk could take positions now with a trading target of $570 and a stop-loss at $455.

Apple has become a moving target, but a well-placed arrow here could result in a bushel of profits.

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Source URL: https://investorplace.com/2013/09/trade-of-the-day-apple-aapl-4/

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