Apple (AAPL) very close to All Time Highs – Weekly and Daily View

Sep 29, 2009: 3:04 PM CST

Unless you’re following Apple, or glance at it from time to time, you might not believe me when I say Apple (AAPL) stock is about $15 away from an all-time high just above $200 per share.  Yes – it has recovered that much since the bear market lows of $89 per share.  Let’s take a quick look at the weekly and daily charts.

Hard to believe – price has doubled since the March lows into the September highs, retracing 90% if the $202 high to the $80 low… just under 10% of further up action to go to make a new Apple high.

There’s some potential ‘price resistance’ to work off as seen at the $190 level from the 2008 price swing highs, so any break solidly above $191 would likely trigger a “Magnet Trade” up to $200 to test the all time highs.  Any solid break of $202 could – strangely enough – argue for even further upside potential in the stock.

A quick look at the momentum oscillator shows that there was a nice positive momentum divergence and “rounded reversal” into the January 2009 lows before the current price rally.

The momentum oscillator currently is not really forming negative swing divergences, given that price really hasn’t formed any ‘swings’ on its journey to the recent highs.  Thus, we would call this entire move a “single swing” to the upside.

The moving average orientation is in the most bullish position possible on the weekly frame.

Let’s drop down now to the dailies for more insights.

This is the picture of price strength – price rising in a smooth, 45 degree angle (the angle of ascent has been increasing, which tells us that the trend is in the late mature stages), and the 20 EMA being consistently/solidly above the 50 EMA… and both of which are above the 200 day SMA.

You’d expect to see some type of divergence in a continually rising market, but we don’t see that – the 3/10 Momentum Oscillator has made tiny new highs all along the way, which continues to hint that higher price highs are yet to come (it serves as a “Confirmation” of price highs and the solid uptrend).

As long as price continues to bounce off the rising 20 EMA at $180, we should expect higher prices.  A break of $180 would set-up a test of the $170 level for quick swing/scalpers.

Otherwise, let’s see how buyers deal with the $190 prior price resistance level and – if broken – how quickly it will take price to test the $200 area.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

9 Comments

9 Responses to “Apple (AAPL) very close to All Time Highs – Weekly and Daily View”

  1. Rob L Says:

    Also looks like a solid flag pattern being created on the daily chart, over the past two weeks. Which would reinforce the idea of a big surge in buying if it crosses 190. I'd be really amazed to see this thing fall through 177. It would have to crash through the flag pattern, the 20 EMA, and the 9/16 gap.

    I put my money in Microsoft during the lows, which got a similar return… but this looks like a good time to put a little more money in technology and ride the the $190 AAPL breakout. Probably do a $5 stoploss, take half the profit at $199 and put the rest on a $5 trailing stop.

  2. Dan de Man Says:

    The easy money has already been made. If chasing is your style knock you socks off. Otherwise there are more low risk trades out there.

    BTW Check this article out:
    http://blogs.stockcharts.com/dont_ignore_this_c

  3. Corey Rosenbloom, CMT Says:

    I agree, Dan.

    I was just showing how close Apple was to testing the new high which I thought was interesting. Risk is to the upside until we break to a new high and reward is to the downside. Clearly, we're late in the move which is not advantageous for new positions. This was more of an “Hmm. That's interesting” observation.

  4. Dan de Man Says:

    Thanks Corey. I was just commenting in general to all traders. I appreciate your blog and it is one of the best out there.

    Cheers,
    Dan

  5. terlyn Says:

    It seems to me that aapl is rolling over. It's had a flat top for a few days now.

  6. Video: Divergence or Three Push in Apple AAPL | Afraid to Trade.com Blog Says:

    […] 5:24 PM CST // Last week, I discussed Apple’s (AAPL) Daily Chart and noted that “Apple was close to all-time highs” (weekly and daily view) but that there was a price level overhead to […]

  7. illiniry Says:

    Long term, I can't think of a better trade out there. I see no valid reason why this isn't trading near the same price GOOG currently trades at. There is so much uncertainty with Google and virtually none with Apple. The technicals are a great confirmation.

  8. illiniry Says:

    Long term, I can't think of a better trade out there. I see no valid reason why this isn't trading near the same price GOOG currently trades at. There is so much uncertainty with Google and virtually none with Apple. The technicals are a great confirmation.

  9. Video: Divergence or Three Push in Apple AAPL | Penny Stock Trading System Blog Says:

    […] week, I discussed Apple’s (AAPL) Daily Chart and noted that “Apple was close to all-time highs” (weekly and daily view) but that there was a price level overhead to […]