Saturday, August 11, 2012

Apple Inc. (AAPL) - Trade Setup



Apple Inc. (AAPL) is a key stock to watch because it has such a heavy weighting in the NASDAQ and at times can often give us clues as to what the NASDAQ may due in the future.

Above is a daily chart of AAPL and as you can see this stock is consolidating at a very important resistance level  which comes in around 620. The stock is forming a bull flag pattern which suggests that if AAPL is able to take out last week's high, there is s good chance this stock may test the April high of 644.

The NASDAQ (QQQ) is also showing a similar consolidation pattern where we have the last 3 days all trading within Tuesday's range which in my opinion tells me this market is ready for a breakout. Will that breakout be higher? Well that remains to be seen.

On Friday Apple Inc. (AAPL) closed at 621.70 up .97 from the previous day's close.

2 comments:

Stock market trading said...

Nice blog post,i really liked. Thanks for sharing with us such a nice information. Stock Market

Kevin said...

excellent call Kev...

seems everybody is expecting this to be the top with VIX making that low. Makes me think maybe this time they push it higher.

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