Stock Market Technical Analysis
Click on chart to enlarge
Tonight I would like to take a follow up look at AAPL. On my May 13th blog post (6th blog down), I made the bull case for buying AAPL for $570 at that point. Since then it has run up $110 through Monday morning's opening of $680. Anyone who went into AAPL big on 5/13 might consider taking money off the table now after banking a 17% move in 3 months. Many traders will be cashing in on AAPL now and waiting to see what it does starting after the election is over. Granted, if they pull QE3 out of the hat, then anything could happen. But still it's just too big of a move to risk a pullback and end up giving part of the big move back.
It's easy to see from the chart above that it is extended high above its pink 50 day moving average and the likely best case scenario would be a sideways move here until the 50 line caught up with the price. Worst case scenario, we have a nasty pullback and the price falls a good deal also to find the 50 once again.
It's easy to see from the chart above that it is extended high above its pink 50 day moving average and the likely best case scenario would be a sideways move here until the 50 line caught up with the price. Worst case scenario, we have a nasty pullback and the price falls a good deal also to find the 50 once again.
Alan
