Apple (AAPL) kissed a new all-time high above $207, where it’s valued at $1 trillion. So far, the high, as seen on the chart below, represents about a 1.9% overshoot of the upper channel boundary line of the February-August bullish price channel, says Mike Paulenoff.
Apart from the excitement and magnetism of the trillion-dollar achievement, my channel boundary line analysis is necessary to overlay on the near-term fate of AAPL.
In that the upper channel boundary has contained all the prior rally peaks for the past six months, the upside penetration of that barrier should be significant either because it will put a lid on additional sustained strength, or because AAPL is so powerful that the upper boundary is no longer viable, and, instead, is triggering a new, more bullish trajectory going forward.
If the February-August channel remains viable, then AAPL should fail to climb and sustain more than 2% above the upper channel boundary line, which places the line in the sand at 207.35, from where AAPL should stall, churn, and then reverse under the upper boundary line at 203.25 to begin a rest-correction period.
Alternatively, if AAPL sustains and closes above 207.35, the likelihood of upside continuation to my next optimal upside target zone of 212.00-216.00 increases significantly, and argues that AAPL is in the grasp of a new upleg that points ultimately to 240-250.
In either case, the outcome should be fascinating.
See chart illustrating the technical pattern of AAPL.
Mike Paulenoff is a veteran technical strategist and financial author, and host of MPTrader.com, a live trading room of his market analysis and stock trading alerts.
Sign Up for a Free 15-Day Trial to Mike's Live Trading Room!
Mike Paulenoff writes July 30: Ahead of Apple earnings Tuesday, QQQ chart set-up crying wolf again.
