2 Apple Charts This Pro Is Watching
J.C. Parets, Founder of Eagle Bay Capital, was watching two charts on Apple Inc. (NASDAQ: AAPL) in his firm's April 5 report.
On the above weekly chart, Parets noted that the stock was "in a solid uptrend" and that in February it hit the firm's "upside target near 129 based on the 161.8 percent Fibonacci extension of the entire 2012-2013 decline."
The stock's momentum was "putting in a bearish divergence at these new highs," which suggested "taking profits until it digests these gains further."
Parets felt there was "little reason to be short" with an "upward sloping 200 week moving average and relative strength in a strong uptrend."
"I would continue to wait," Parets recommended, "for more data before acting on this again."
Looking to the daily chart below, Parets felt that Apple continued to struggle with the $129 level and that "until we see more data and/or consolidation of these gains," Parets saw "little to do here."
Parets preferred to "wait for more consolidation and buy a breakout above the 3/19 highs above 129. Until then we wait."
In conclusion, Parets did not want to own Apple "if prices are below the 3/19 highs."
Apple Inc. recently traded at $125.56, down 0.36 percent.
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