“When you compare Apple (AAPL) and Google (GOOG) you must consider both fundamental and technical analysis,” Richard Suttmeier writes for TheStreet. “When Apple traded below $400 in April and in June, the stock became the cheapest value stock in the ValuEngine universe and had a buy rating. Google on the other hand has been overvalued all year so far.”
“The key for [AAPL] stock is now technical momentum. The stock is overbought on its daily chart and has a positive weekly chart profile after the stock held its 200-week simple moving average at $286.51 at the end of June. Apple has mojo status as long as weekly closes are above its five-week modified moving average at $461.89,” Suttmeier writes. “My proprietary analytics correctly projected that Apple would return to my annual pivot at $510.64 where buy-and-trade investors should book some profits. To gain additional mojo the stock must have a close today above $510.64 as such indicates upside to my semiannual risky level at $620.84.”
Read more in the full article here.