Apple: Where’s the top?
From Bret Kenwell’s “Apple Is Touching Record Levels. How High Can It Go?” posted Friday on The Street:
In January, April and July, Apple blew the roof off with its earnings results. Yet the stock didn’t reward shareholders.
In the first two instances, Apple stock reversed hard. In both of those instances though, trend support held where it needed to. In the third instance, the prior all-time high near $145 ultimately held as support.
Apple has been a rewarding holding over the past year, but it’s also been frustrating for some investors. It’s slowly but surely pushed its way higher — but the sluggishness and the selloffs after strong earnings have tested some investors’ patience.
And while its gains have been solid, it still lags the S&P 500 in performance this year. Over the past year, Apple’s 35% gain overtook the index’s 32% return only due to this week’s rally…
A close above $160 could set the tone for a larger push, putting the 161.8% extension from the more recent range in play near $170. Additionally, the two-times range extension from the previously-mentioned September 2020 range comes into play near $173.
We are watching for a close above $160 in order to open the door for a potential rally to the $169 to $173 area. Above $175 and longer-term bulls can look at the $188 to $194 area as the next upside target zone.
My take: I think these are Fibonacci targets. Not understanding exactly how they are derived, I pass them along without comment.