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Monday, January 5, 2009

Apple rallying today

I wrote a piece on Apple Saturday and today its rallying on some news.
The news is related to my point # 5. on why AAPL was under pressure.
I wrote about Steve Jobs unclear situation. But this morning Mr. Jobs wrote a letter to shareholders and everyone likes what he had to say, click here to read about it on bloomberg.com. How do I know they like it, because the stocks is rallying. I showed the APPL chart and the stocks has rallied right into resistance. If it manages to break it , on good volume , then we get the upside breakout we were looking for.
What is good volume? good question. Acc. to yahoo Finance,for the last 3 months, daily avg volume is 47 Million and for the last 10 days, daily avg volume is 21 million. A huge difference , while I would like to see volume higher than the 3 month daily avg, since I trade , even the 10 day daily avg is good enough. Its looks like we will get good volume today, but its better to be reactive than proactiove in this market. Apple has to close above that downtrend line I showed.
I am not going to chase it here I will wait and see. If it break out it will surely come back to test the breakout point.

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