Apple (AAPL) — This has been one of our most successful stocks in 2013. I recommended traders short it on Feb. 28 at $440, with a downside target of $500 to $450. I flipped to the buy side on July 9, with the stock near $410, saying, “All shorts should be covered in light of a possible saucer forming.”
And on Sept. 27, I said, “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.”
Most recently, on Nov. 27, I said, “AAPL has since closed above $500, and then consolidated along a line at just under $540. This is the new resistance, and a close above that line on higher volume should result in a quick hop to our trading target of $570, and then to the January target of $600.”
My colleague, Josh Levine, editor of ChangeWave Investing, supports the buy recommendation. He said, “Clearly, Apple ends 2013 on a strong note and will enter 2014 with increased momentum to introduce anticipated new products (e.g., iWatch, iTV).”
On Monday, AAPL executed a breakaway gap from its 20-day moving average, setting a new closing high for the year. My target remains $600.
