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Thursday, January 12, 2012

AAPL short-term trading dynamic

AAPL looks to want to chill here until they report. From a short-term trading dynamic perspective AAPL will be chilling between its 5SMA and 10SMA.


It bounced off its resistance trend line, quite beautifully, and now it is just looking for an area to base. The SMAs have been moving upward at a pace of around 1.5, so that would place the 10SMA around 418 tomorrow, near yesterday's low.

Basically, outside of the trading jargon, an entry can be made around 418-419. It will most likely have an upward bias prior to reporting on the 24th, but upside should be capped near 427. 

Based on the macro trend affect on earnings and low multiple assumptions, AAPL should trade near 450 after they report.

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