Apple (AAPL) Ready for New Highs After Working Through Issues

Apple Inc. (AAPL) is the first chart I look at almost every morning of my career and if you watch the Morning Call you see I cover it in some form almost every show. The reason I like to look at and trade Apple is that it trades very well technically, providing active traders with good, calculated and measured moves.

Back on April 16th my RedDog reversal strategy triggered for a buy into support around $326.80. Then company came out and reported very impressive earnings this quarter and stock responded well and gapped up into resistance. AAPL reported record EPS of $6.40,. a 95% surge in quarterly profits, and topped revenue estimates by more than 1 billion dollars, largely in part to strong iPhone sales. The iPad 2 arrived in Japan last week and is coming to 11 new countries today, with the tablet looking to be the next big money maker for Apple.

(click to enlarge)

Since then it’s held the earnings gap and absorbed a lot of bad news. Uncertainty over Steve Jobs’ future with the company is the darkest cloud, while supply chain concerns in Japan have also surfaced. More recently index rebalancing has triggered weakness in the stock, as its Nasdaq weighting went from 20% to 12%. This rebalancing will end at the close today.

I think you can tier one AAPL in this $345-350 area, and then add for a momentum tier once it clears $352-355 at some point in the next few sessions. This will take us to the old resistance around $364 then new highs to my ultimate target this year around $420-450.

Disclosure: Long AAPL

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

Visit: T3Live

4 Comments on Apple (AAPL) Ready for New Highs After Working Through Issues

  1. In the conference call, they said that they expected no issues from the Japan quake to impact either production capacity or cost.

  2. An interesting article.
    I think the index is actually called “Nasdaq-100”.
    It will be interesting to see what the related ETF called QQQ will do.

  3. The white iphone was having problem. HOw can it reach new highs. It will turn black when it is being too hot.

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