Chart Review: Apple Breaks Out

Published 08/07/2012, 06:00 AM

The recovery from the post-earnings dip in July is officially complete for Apple (AAPL).

On Monday, August 6th, AAPL broke out from a short trading range defined at the bottom by the psychologically important $600 level and at the top by the April post-earnings high.

This breakout symbolizes the neutralization of whatever worries prevented buyers from taking AAPL higher after April’s earnings and motivated sellers to take down AAPL after July earnings.
Apple breaks out
Fresh all-time highs are now well in sight for AAPL. Once (if?) those break, the stock will return to that “happy place” where almost every person holding onto a share of AAPL stock is profitable. The dissipation of selling interest and increase in buying pressure should propel AAPL higher at a swift clip.

Full disclosure: long AAPL calls

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