Using monthly and weekly charts, MoneyShow's Tom Aspray analyzes these two tech giants to find out not only their near-term targets, but also the technical strength of their long term trends.
As stocks have moved steadily higher since the early June lows, there have been many who have questioned the sustainability of the rally because of the weak economic numbers, as well as what some see as narrow leadership. Recent data on the economy continues to indicate sluggishness.
Since the Powershares QQQ Trust (QQQ) has a 19% holding in AAPL, many have been very cautious about buying any stocks as they have been unable to trust the rally. The patent award has also increased the bullish sentiment on Apple (AAPL)
As I will discuss in more detail in Friday’s column, the current analysis of the market internals, though positive, does not currently suggest that stocks are ready to accelerate to the upside. There are also no signs of a sustainable market correction...but that could change if these two market bellwethers weaken as they reach our next upside targets.
The combination of the monthly and weekly analysis can help identify not only the upside targets, but also the strength of the major and intermediate-term trends for these two key stocks.
The weekly chart of Apple (AAPL) shows that this week’s Starc+ band at $678 is now being tested. For next week, the Starc+ band is at $689.
NEXT: Key Levels to Watch for Amazon