Working Money magazine.  The investors' magazine.
Traders.com Advantage

INDICATORS LIST


LIST OF TOPICS





Article Archive | Search | Subscribe/Renew | Login | Free Trial | Forgot ID?


PRINT THIS ARTICLE

TREND-CHANNEL


Apple Breaks Higher

08/26/04 12:22:07 PM
by Arthur Hill

Apple Computer (AAPL) has been leading the market in 2004 and just signaled another continuation higher.

Security:   AAPL
Position:   Buy


Figure 1: Daily chart of AAPL.

On the daily chart, AAPL has been working its way higher within a rising price channel since December 2003. While the Nasdaq declined sharply in July and August, Apple gapped higher in mid-July and held firm throughout Nasdaq's weakness.

The resulting pattern was a symmetrical triangle (magenta trendlines) and the recent breakout signals another continuation higher. Notice that volume was above average on the breakout and this further validates strength. This is especially impressive considering that overall volume levels for the Nasdaq have been below average in August.

With a fresh breakout, it is time to consider upside targets and there are three options. First, the symmetrical triangle projects further strength to around 38 - 39. The width of the pattern (about 6) is added to the breakout (32.3) for a target. Second, the upper trendline of the rising price channel extends above 40 in September. Should the stock continue the prior rate of ascent, a move to the upper trendline can be expected.

Figure 2: Weekly chart of AAPL.
Graphic provided by: MetaStock.
 
Turning to the weekly chart, we can see an even larger price channel and higher target further on the horizon. This price channel extends back to April 2003 and the upper trendline projects a move to around 50 by the end of November (green circle). Perhaps Christmas is coming early for the maker of the iPod.



Arthur Hill

Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.

Title: Editor
Company: TDTrader.com
Address: Willem Geetsstraat 17
Mechelen, B2800
Phone # for sales: 3215345465
Website: www.tdtrader.com
E-mail address: arthurh@tdtrader.com

Traders' Resource Links
TDTrader.com has not added any product or service information to TRADERS' RESOURCE.

Click here for more information about our publications!


Comments or Questions? Article Usefulness
5 (most useful)
4
3
2
1 (least useful)

Comments

Date: 09/01/04Rank: 5Comment: 
PRINT THIS ARTICLE





S&C Subscription/Renewal




Request Information From Our Sponsors 

DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Traders.com Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2021 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.