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Today, we’re opening a new bullish trade on Apple (AAPL). AAPL has been climbing to new all-time highs, and we anticipate that it is going to continue setting new all-time highs when it breaks out of its short-term “pennant” bullish consolidation range.
AAPL has been performing well on two fronts. First, the company continues to innovate and sell premium products with strong margins. Better-than-expected iPhone and MacBook sales were a primary driver behind AAPL’s huge earnings beat in late January. This was accompanied by continued growth in the company’s services business — app store, streaming music, mobile payments, etc.
Second, the company continues to send mountains of cash back to shareholders in the form of dividends and share buybacks. During the past year, AAPL has paid out $12 billion in dividends and has repurchased $31 billion worth of AAPL stock. This has provided a strong lift to the company’s EPS. We expect this to continue in the future.
Based on the $5 moves higher the stock has been able to make nearly every two weeks since early-December, we expect AAPL to climb up toward $145 during the next few weeks as investors continue to pour into this ultimate Wall Street darling.
‘Buy to open’ the AAPL April 145 Calls (AAPL170421C00145000) for a maximum price of $1.20.
You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.
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