What company is more fitting for a first post? The largest company in the world, Apple is up almost 260% in the past 5 years, 71% in the last year and 15% year to date. Even after these monstrous moves, Apple is still a buy.
In the short term, however, Apple is showing a bearish chart. Its earnings date is scheduled for April 27th and, coincidentally enough, Apple is shaping a head and shoulders chart that should be completed just before that (ominous) date.
So what does this mean for you? Well, while I certainly wouldn't bet against Apple in the long run, I definitely see it trading up to the low $130s before announcing its earnings, and subsequently taking a turn south. During Apple's conference call, investors are expecting insight as to how many watches were sold on April 24th, the watch's launch, and I see this being a main reason why this chart is forming. In short, investors are expecting the number to be weak, and therefore believe the stock will fall.
The Bottom Line: If Apple obtains a $130 handle, it might be advantageous to take some profits. There will always be a time to get back in for the long run. I see this time being after a bad earnings day, should this be the case. The long line of support is right around $120, so that might be a safe place to pick up some shares. Every time Apple has hit this line of support, it has bounced back with gusto.
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