Since my last update on cult stock Apple Inc. (AAPL) on August 6th HERE, the stock has continued its push higher and found resistance in the $500 – $520 area that I laid out at the time. As the company is scheduled to announce two new iPhones tomorrow September 10th, I thought it would only be appropriate to go through the company’s current stock chart with an update:
After rallying sharply off its double bottom from April and late June, Apple Inc. (AAPL), the stock’s push past the $430 area was the first sign that the rally may be more than a fake-out run higher. The next important level which the stock had to overcome was around the $465 – $470 area, which was simple lateral resistance dating back to mid February, and also coincided with the stock’s 200 day simple moving average. As can be seen on the below chart, the stock sliced through this area as if it didn’t exist, in a further testimony that the bulls regained control of the stock.
By August 19th Apple Inc. (AAPL) was well inside my $500 – $520 target area, and at $513 and change filled its post earnings down-gap dating back to January 24th. Even though the stock has since pulled back a little, it continues to establish itself back above the $465 – $480 area as well as above the 200 day simple moving average. From where I sit this is constructive action that promises higher highs in coming months.
More near-term, the company’s product announcements on Tuesday September 10th has the potential to swing the stock in either direction. Of note however is that the stock’s current consolidation phase is shaping in the form of a wedge, which for the time being has a bullish tint to it. To be more precise, should the stock be able to push past $502 it could quickly move up for a re-test of the August 19th highs where it then stands a much better chance of breaking to higher highs.