Is It Time To Buy Apple Stock Again?

A very popular stock, Apple, has once again appeared on a Fumbled Returns Watch List. Is it time to buy Apple again?

Let us take a look at the chart and some key points.

Apple has two key chart patterns happening now:

1. Bouncing off of a previous top level resistance point (which then became a support level ). By they way, that previous top resistance occurred January 2012 – Seventeen Months Ago!
2. A rising wedge pattern, which could signal a reversal of the downward price channel.

 

As a company, Apple continues to face stiff competition from Google and Samsung. They have not released any new products since last October and face yet another lawsuit.

But, CEO Tim Cook promises new game changing products in the near future. Perhaps as early as this fall. However, we all know about Apple’s passion for secrecy. Apple also has a dividend program which will only serve to help investors in the long run.

If Mr. Cook and Apple can deliver on improving on their brand by releasing “game changing” products, Apple’s stock stands a good chance of remaining above it’s current support level.

If you are worried about Apple’s ability to deliver and increase it’s stock price and value, don’t worry, there are some other good stocks on the Fumbled Returns June Watch List, with similar favorable patterns forming.

Namely:

INTC

Which has formed one of the most favorable chart patterns for a breakout – Cup and Handle.

 

Disclosure:  I am not currently invested in any stocks mentioned in this post.

All charts courtesy of:

Check them out for free!

 

 

Apple, Head And Shoulders Above The Rest?

Last week I read more than one article citing a classic Head And Shoulders reversal pattern for Apple (AAPL).

Now I will be the first to admit that stock pattern investing is far from perfect.

In fact, not many folks have gotten rich off of this strategy.

However, that fact has never stopped many investors, myself included, from dabbling in pattern investing from time to time.

I’m not going to disagree with these pundits regarding the Head-And-Shoulders Apple Pattern, they are correct in their descriptions and assumptions.

All of the articles used the same 6 – 8 week time frame for their analysis.

All of them come up with a support level just a little bit north of $600.

That is fine.

But if one is going to go into stock pattern investing, why not go in big? As in a Bigger Time Period.

Take a look Apple stock price pattern over the past year.

Notice anything?

A much bigger Head-And-Shoulders pattern forming? With a much lower support level? Closer to $500; not $600. That would mean a price correction / reversal of nearly 30% instead of the current 10% correction.

Words of warning?

Perhaps.

Folks are correct when mentioning the $600 – 630 prince target as support.

IF this does not hold, then we could see Apple stock setting up for a much bigger head-And-Shoulders pattern with an ultimate low point closer to $500 – $550.

IF the support does hold, then we could be talking about yet another pattern entirely.

A rising support pattern which involves rising dips in the stock price which would once again bring the $700 point back into play as a resistance level.  Breaking through this resistance level would be key for continuing the rising of the stock.

I am not saying either outcome is a done deal.  But, if you find Apple investors crying about a $500 stock price next spring; remember, you heard it here first.