December 29, 2009
Last week we wrote; “Apple has had two rallies since October with lower intra-day highs in the second one. The first reached $208.71 on Oct 21 and the second reached $208 on November 16. Draw a line through these highs and you have a declining trend resistance line. Apple is headed for the declining trend resistance line which is at about $206 as of Wednesday’s December 23 close.”
On December 24 Apple gapped up at the open, rallied all day and closed above this declining resistance line. Such rallies are typical of Apple which has a huge following, not only among computer users, but investors too. Rallies are typically strong as traders pile into this stock when they feel new highs are imminent.
On Monday December 28 Apple continued to advance closing at $211.61.
The new short term target for Apple is now $222.76. Should this level be surpassed, Apple could move all the way to $261.60 in coming months.
Disclosure: The www.fibtimer.com Stock Strategy has a position in Apple Inc.