Apple (AAPL) has been creeping higher the past several weeks. Slow and steady, day after day, but now prices are just a shade below their January and February highs, and there doesn't seem to be much overhead resistance. While some analysts might suggest a double-top pattern is possible, I think we'll see higher prices and not a downside reversal. Let's look closer.
In this daily bar chart of AAPL, below, we can see a bullish alignment of prices and indicators. AAPL is above the rising 50-day moving average line and above the rising 200-day moving average line. The daily On-Balance-Volume (OBV) line shows strength from early April as buyers have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero-line last month for an outright go-long signal.
In this first Point and Figure chart of AAPL, below, we can see the uptrend in price. AAPL is just a few "boxes" from a new high trade and breakout. The volume by price bars on the left side of the chart shows that there was not a lot of volume traded at the prices above $318.32 so we should not anticipate much in the way of selling resistance.
In this second Point and Figure chart of AAPL, below, we used weekly price data. Here the chart shows a possible price target of $424.
Bottom line strategy: Stay long shares of AAPL recommended in previous updates. Raise sell stops to $301. $350 and then $400-$424 are the price targets.
(AAPL is a holding in Jim Cramer's Action Alerts PLUS member club . Want to be alerted before Jim Cramer buys or sells this stock? Learn more now. )
