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*** These days I post my charts/thoughts on http://www.stocktwits.com under the same user name BreakoutTrader *** "Charts are worth a million words." - Ralph Acampora "Having learned what folly I was capable of, I closed that particular incident." - Reminiscences of a Stock... More
  • AAPL Apple: Second Time's A Charm ? 4 comments
    Dec 25, 2011 9:44 AM | about stocks: AAPL
    Apple (AAPL) has hit $410 and $420 resistance areas several times and
    turned back since late September. See the following weekly chart.

































    It underperformed S&P 500 on my relative strength indicator 
    (the lower pane of the chart) the week of 10/17 when the stock
    closed lower for the week and remained underperformed the index
    on relative strength since then.

    Well, until this week (See the white arrow) ...

    The price actions have also been in sync with a perfectly fit up-trending
    Andrew's pitchfork from the week of 11/21.

    So would this be "Second Time's A Charm" for Apple to break out to the
    up side, regardless of the fact that every body and their mother know 
    Apple will have a blow out quarter due to the wonderful iPhone and the
    new playful Siri virtual assistant pal ?

    A look on the following daily and 4-hour charts shows Apple has
    crossed the line in relative strength on lower time frame charts.

    20111223 AAPL Daily































    20111223 AAPL 4H































    So barring any adverse actions from the general market, Apple
    has good chance to break out this time going into January earnings
    announcement ...

    Disclosure: I do not have any positions on Apple, but may initiate
    bullish options positions on Apple in the next 72 hours.








    Themes: Apple, Relative Strength, S P 500 Stocks: AAPL
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This post has 4 comments:

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  •  
    Have you bought shares in appl yet?
    11 Jan 2012, 01:07 PM Reply Like
  •  
    I did initiate some bullish options positions.
    14 Jan 2012, 10:49 PM Reply Like
  •  
    I'm sorry, but by next week the buyers will way overwhelm the sellers. With the anticipated earnings who can be on the sidelines. I'm selling before the news, though.
    12 Jan 2012, 12:32 PM Reply Like
  •  
    AAPL will announce earnings on 1/24. Whether one should
    get out before earnings or hang in there, it really depends
    on one's risk tolerance and the plan to manage the risk.
    Either way is fine. Good luck to your trade.
    14 Jan 2012, 10:53 PM Reply Like
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