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  • Apple To Reach 600 Or More By The End Of The Year 0 comments
    Jul 22, 2013 2:11 AM | about stocks: AAPL

    NOTE: TradersForecast market analysis is based on Accelerator™ - a set of proprietary technical indicators. Support and resistance lines, trend lines and channels applied to these indicator lines instead of the price itself reveal points of trend reversal that are often not apparent from the price chart.

    The magenta Accelerator™ line of the Apple (NASDAQ:AAPL) monthly chart formed a channel and at the end of the last month it bounced off and started going up this month. This up move is expected to continue until the magenta line reaches the top of the channel. This translates into a significant up move of the price. Depending on how long it will take to reach the top of the magenta channel, Apple stock price will reach at least 560 if this happens by the end of August, at least 580 if this happens by the end of September and at least 620 if it happens by the end of October. If it takes longer, Apple will go even higher.

    The monthly Apple chart below shows one of these scenarios. The green line is the Apple stock price and the other lines are the Accelerator™ lines. The orange vertical line shows the present and to the right of the line it's a possible future. Assuming the magenta line will reach the top of the channel by October, Apple is shown there to reach 660. Apple is then shown in the chart to fall to 530 over 4 months (end of February) reaching the lower channel again. That fall is less certain since at the top of the magenta channel, the magenta indicator shows Apple has the potential to make a second top (reach the top of the channel a second time) which translates in price going even higher before falling.

    (click to enlarge)AAPL

    Following there are some comments regarding why the same indicator level may translate into different levels of the stock, depending on how long it takes for the indicator to reach that level. Since one of the things the Accelerator™ indicators measure is a rate of change over time (acceleration, so to speak), if the price moves up more slowly then the price will move up more before the indicator line hits the top of the channel (since there is less acceleration). If the price moves up faster then Accelerator™ will spike higher and it will take less price movement for the indicator line to reach the top of the channel.

    I have an Apple call with January 2104 expiration at 500 strike.

    Disclosure: I am long AAPL.

    Stocks: AAPL
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