Friday, October 10, 2014

Apple Flat Base Ready To Breakout Ahead of Earnings

Apple (AAPL) has spent the last six weeks forming a tight, second stage flat base along its fifty day moving average, despite the market's correction and ahead of its October 20th earning's report, with its relative strength line leading into new high ground. The stock advanced 38% since gapping out of a deep, first stage cup and handle base April 24th, in volume 190% heavier then its fifty day average, on a strong earning's report.

The stock can be bought anywhere between the upper trend line of the consolidation around $102, all the way up to the flat base high of around $105. Protective stops should be place at the consolidation low of around $97.50, and tightened up if the stock fails to make progress.

Full Disclosure: No Position

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