Wednesday 14 March 2012

AAPL - where will it end?

AAPL - daily, near term


The infamous AAPL had another super Tuesday.  See the blue histogram MACD cycle, which is again turning positive cycle. It could easily crawl up for another 3-5 trading days.

Bullish target: 575/585.  Obviously, the next big level - $600 is well within range to be hit at any time

Bearish target: the 10 day MA, currently 543 - but rapidly rising. So right now, even a $25 dip would not negate the current relentless uptrend. Arguably, only if AAPL can see 2-3 days of consecutive closes below the 20MA (presently $528), can the short term trend said to be broken.


April earnings season - probably bullish

Assuming the main indexes can comfortably crawl into the SP'1400s, and that no 'events' occur in March, it'd seem that AAPL in the mid 600s is very reasonable to expect by late April. Who would dare short this monster of a stock? Anyone bearish on AAPL should dwell on the fact that the Forward PE ratio for AAPL is a mere 12. That is barely half of the average. Considering the legion of consumers that will buy anything with the Apple logo on it, surely it deserves to be at least part of the 'average' PE group?

Good wishes for Wednesday!