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Terry J. Atzen is an author, entrepreneur, world traveler, financial/life strategist, supporting partner, father, grandfather. After earning his way through college he served his country as a Naval Line Officer aboard a heavy cruiser before entering the business world. Terry has a broad and... More
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  • AAPL: At A Technical Crossroad 0 comments
    Aug 4, 2013 6:11 AM | about stocks: AAPL

    The Point-and-Figure (NYSE:PNF) chart below of Apple, Inc. (NASDAQ:AAPL) indicates that buyers of AAPL currently prevail after months when sellers relentlessly took the price down from last fall's highs.

    While the sell-off of AAPL was taking place the overall market has been making new highs as seen below by the PNF chart of SPY.

    So what is really influencing the price of AAPL?

    Clearly it was not the overall stock market.

    In the simplest of terms, it's always the minute-by-minute decision made between buyers and sellers - whatever their rationale.

    And, that is the value of the PNF chart.

    The simplest explanation of PNF charts, with columns of Xs and Os, is that the chart indicates where and when there is demand and where and when there is supply.

    Buyers "punched through" the blue resistance line seen on the AAPL chart above at 440 earlier this week and the current price is approximately at the next resistance level of 456.

    As can be seen, resistance above that is a close 460 and 464 (where buyers had taken the price back in June and May, respectively).

    Investors are alerted to monitor the PNF to help them determine if AAPL will break the "downtrend" that has existed since last fall. Or, will sellers take the price back down to support at 420 or even lower (392 - June low or 384 - April low)?

    On a more positive note, the weekly PNF of AAPL, seen below, gives one a bit of a different view.

    Chiefly, that AAPL is still in its long-term uptrend.

    Resistance on this chart is the same as the daily chart - 460 and 464 - with 480 not too far above those levels.

    What may also put buyers at ease is the rising bottoms of the column of Os printed in April and June.

    Me? I like the rising bottoms of the column of Os seen on a PNF chart which are hallmarks of an uptrend.

    So here we are, buyers and sellers deciding which road to take with AAPL.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Stocks: AAPL
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