Technical Analysis of Apple Inc. ( AAPL )

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Apple Inc. (NASDAQ:AAPL) - The stock chart pattern managed to avoid breaking its 200-day MA last month by a whisker. The stock did drop below the 365 level to 363.32 on Nov 25 but it immediately started to move upwards and formed a "V" bottom. So, from a technical perspective, the earlier bottom can be considered as a support. The up move on good volumes is too convincing. The stock faced resistance from the confluence point of the 50-day and 100-day MAs. Technically speaking, the MA's confluence points can also act as a bullish signal. In addition, the 200-day MA is rising smartly and the stock is trading now well above it, so the long-term bull market is under no threat. We will need to observe the stock closely in the near term. The technical indicators are looking mildly bullish. The RSI has crossed above the 50% level and the MFI is moving sideways above the 50 % level, giving the bulls some hope of recovery. The MACD is touching the flat signal line. Expect a bit of consolidation here. I am long on APPLE and I will add more shares on a move above $396, with the expectation of a continued rise to $410. My stop loss will be placed $1 below its 200-day MA.

Other stock to watch : Zalicus ( ZLCS )

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Zalicus, Inc. (NASDAQ:ZLCS) - The stock has penetrated both the 20 day-MA and the 50 day-MA from below, indicating bullishness. Bottomline? There is strong support on the medium term charts at $.90, from where it bounced back recently. But, the increase in volumes and the 20 day-MA ready to cut across the 50 day-MA from below may be the first signs of a trend change. The stock fell on low volume on Thrusday, a good sign. I like the stock as long as $1.05 holds.

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Unusual Volume

AMR - A M R CORP
CLWR - Clearwire Corp A
DMAN - DemandTec Inc
AFFY - Affymax Inc
THQI - THQ Inc.
MCLN - General Devices Inc
ARR - Armour Resd Reit
EPD - ENTERPRISE PRODUCTS
GNBT - Generex Biotechnology
VSPC - VIASPACE Inc
ALXA - ALEXZA PHARMACEUTICAL
CFW - CANO PETROLEUM INC
FXPT - Nova Resources Inc
IVC - INVACARE CORP
HLDVF - HENDERSON LAND DEV
GIII - G-III Apparel Group
SINX - Sionix Corp
THWI - Thwapr Inc
VTSS - Vitesse Semiconductor
CNOZ - Tiger Ethanol International
LYFE - LYFE Communications
CONN - CONN'S INC
ALALF - Alcatel Alsthom Co
CMRG - Casual Male Rtal
WSCE - CTI DIVERSIFIED HLD
CPTS - Conceptus, Inc.
CSOD - Cornerstone OnDemand
BGPIQ - BORDERS GROUP INC MICH
WLOL - Winlnd Ocn Ship
CBBD - You On Demand
STXXQ - SOUTH TEXAS OIL COMP
ORCH - Orchid Cellmark Inc
ATRN - New Motion Inc
AUSVF - Aura Silver Resources
CMPD - Compumed Inc
LGCUF - Luna Gold Corp
HTHIF - Hitachi Ltd

Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.

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Labels: AAPL