Tony: Founder of KhronoStock.com and KhronoStock Blog Network
In addition to have constant updates on global indices analysis, one of our other contributing analysts Mike of movermike.com also covers certain stocks on a daily basis for the general public. I will try to share some of his daily posts on popular stocks on StockTock. This is Mike’s article on AAPL today.
From Mike:
I did a double take this morning. Running down my morning charts from “INO.com Trend Analysis”, I stopped at Apple (AAPL). The MarketClub chart showed AAPL breaking out into all-time high territory! I knew the sales for iPhone are hot, hot, hot, but could AAPL be in all time high ground? Here’s the chart I was looking at:
The chart of AAPL since the beginning of 2009, just registered a new high. Then, I pulled back and took a longer view that included 2008 and a different picture emerged:
The last chart shows AAPL is not at an all-time high, but entering more overhead resistance. In fact when I added Fibonacci retracement to the chart, AAPL is trading at the 61.8% level, the “golden rule”. I also noticed a small gap that was formed on September 15th, 2008. To me it looks like a time to be cautious toward AAPL, rather than bullish because of the breakout.
As always, trading can be risky and you can lose money. You should always use good risk limiting strategies.
As a long time AAPL follower I totally agree the gap will be filled. It would be great if you could post charts that could be expanded for a closer view. Thanks for the post.
Will do. Thanks for the comments.
Looks like a Donchian Channel breakout.. could get ugly.
http://blog.mdsfinancial.com.au/wp-content/uploads/2009/04/donchian-channel-breakout.pdf
It could get ugly because of the overhead resistance, but bullish because of the breakout.