Trade Ideas: AAPL, ZLCS

Apple Inc. (NASDAQ:AAPL) – The stock chart pattern managed to avoid breaking its 200-day MA last month by a whisker. The stock did drop below the 365 level to 363.32 on Nov 25 but it immediately started to move upwards and formed a “V” bottom. So, from a technical perspective, the earlier bottom can be considered as a support. The up move on good volumes is too convincing. The stock faced resistance from the confluence point of the 50-day and 100-day MAs. Technically speaking, the MA’s confluence points can also act as a bullish signal. In addition, the 200-day MA is rising smartly and the stock is trading now well above it, so the long-term bull market is under no threat. We will need to observe the stock closely in the near term. The technical indicators are looking mildly bullish. The RSI has crossed above the 50% level and the MFI is moving sideways above the 50 % level, giving the bulls some hope of recovery. The MACD is touching the flat signal line. Expect a bit of consolidation here. I am long on APPLE and I will add more shares on a move above $396, with the expectation of a continued rise to $410. My stop loss will be placed $1 below its 200-day MA.

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Zalicus, Inc. (NASDAQ:ZLCS) – The stock has penetrated both the 20 day-MA and the 50 day-MA from below, indicating bullishness. Bottomline? There is strong support on the medium term charts at $.90, from where it bounced back recently. But, the increase in volumes and the 20 day-MA ready to cut across the 50 day-MA from below may be the first signs of a trend change. The stock fell on low volume on Thrusday, a good sign. I like the stock as long as $1.05 holds.

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Disclaimer: This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.
About Antonio Costa 325 Articles

Antonio Costa is a 35 year old part-time trader who trade stocks in the US market.

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