Apple (NASDAQ:) has remained well bid today despite the overall weak index trade. At midday shares are up 2% following positive comments from Morgan Stanley (NYSE:). This divergent action is setting AAPL up for an upside breakout. A clear take out of the November peak ($122) could spark quite a strong December.
AAPL has been trading inside the September range since holding major support near the $106-$107 area towards the end of the month: http://thisweekonwallstreet.com/apple-plan/. This key support zone held the November lows as well. With solid footing underneath we expect more upside next month and eventually a retest of the all time highs($138.00). On the downside, a close back below $112.00 would violate last week’s low sending clear warning sign that more sideways action is ahead.
Note: We are long AAPL in some managed accounts.
You can read Gary S. Morrow’s original post here.
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