“Now that Apple Inc.(AAPL) has broken out above the 200-day, downtrend, moving average and broken above the psychologically important 500 price, is it ready to target resistance at $508 and $580?” Tom Lloyd Sr. asks for MarketWatch.
“The announcement of Carl Icahn buying a stake has finally enabled price to break out of a trading range, confirm a double bottom that is in place on the daily chart and provide the first buy signal coming up from a bottom, namely the break above the 200-day moving average,” Lloyd writes. “The big question is can price hold above the 200-day and will it move still higher as Icahn does his thing?”
Lloyd writes, “My short answer is that it is targeting $580 and will have pullbacks in price between here, at $500 as I write and the target or resistance level. Nothing goes straight up and a pullback in the market will put a dent in the Icahn move up. Of course new product announcements will propel price higher and we can expect some before the holiday season so important to a retailer such as Apple.”
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