“Apple Computer is a leader that is extended. The stock has made quite the move this year and is perfuming exceedingly well. AAPL is up 67 percent this year. The year over year gain has all occurred this year. The solid advance began after the stock broke through its three-year plus high earlier in the year and struggled for a while finally breaking through recently,” Jack Rothstein writes for Wealthcast. “Examine the weekly chart and notice the big gap that is in the process of getting filled. The stock has the potential to rise into the mid 40’s and ultimately challenge 55 a share. That was the zone when it free fell on Sept. 29, 2000. It fell from 55 to 26 in a day. It is now on track to backtrack. The stock is currently extended so it could be had between 33 and 34. The stock will not move straight to 55 so manage it.”
“Place the initial stop loss at the 50 day moving average 31.99 and a final stop at 29.60. Give AAPL some room,” Rothstein advises.
Jack Rothstein is an SEC-registered investment advisor who specializes in such growth sectors as technology, drugs, financial services and specialty retail. He also edits the Wealthcast investment letter and hosts two radio shows in the Washington D.C. area.
Full article “Commentary: Top tech picks for the next six months,” here.