The stock was over $100 in after hours when it reported Wednesday night, but failed to hold this major round number Thursday *and* closed at the day's lows. These are not good signs. However, Friday the stock held gap support, which is is a positive for bulls. Breakouts to highs off of a cup and handle formation (which AAPL did) can lead to powerful upswings, which is another positive for this stock.
I might be willing to take a small nibble under $100, but I won't increase position size until we see some more clear signs of strength. If the stock can not hold support, I would expect it to fall back to the 50 day moving average and may initiate a short position.
6 comments:
This has nothing to do with AAPL, but what do you think of the QCOM breakout and pullback to support?
FT
Simple answer, Buy AAPL!
Ragin: Thanks for simplifying :)
MDJ: Lots of support at $44, however, I'm concerned that the stock gapped down on pullback.
I would like aapl long around 95ish on a pullback. Otherwise I would pass.
The volume was fairly high also during the pull back of QCOM, would that be another warning sign?
FT
You are right, MDJ. It's not the type of pullback I look for. The stock could go up, but it's too high risk for me.
Post a Comment