Last summer, when Apple stood at $358 per share, the “Power of the Pattern” was reflecting in the chart below that Apple could reach $430 a share, due to its quality rising channel. (see post here)
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At last nights close Apple stood at $427 a share, moving almost 20% higher following the breakout of the $360 level (inset chart above). It paid to follow Apple’s breakout above resistance.
Where does rising channel resistance now come into play for Apple and could it pay to follow another breakout?
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Apple remains inside of its rising channel and is attempting an upside break above resistance line (1). In my humble opinion at this time, Apple is not far enough above line (1) to say a breakout has taken place. At this time (1) remains as resistance.
Keep a close eye on Apple here because a solid breakout above resistance could bring in more buyers and push Apple towards the top of its rising channel. The Apple situation is more important than usual to the NDX 100 as it is dealing with its 38% retracement level, dating back to the 2000 NDX 100 highs (see post here)
Does $500 a share sound high for Apple? Sounds pretty lofty to me. Did $430 a share sounded high last summer when Apple was trading at $350? I suspect it did too…
