Today maybe is the first day for Apple to get rally from now on. It
seems the strong signal indicates Apple is going on the up trend.
Fundamentally, this stock has been stayed within $20.125 - $29.75
between 8/6/97 and 10/17/97, in which the weighted average is around
$23, and the cumulative volume is about 8 times of its total
outstanding volume. It is believed that most of the short positions
were built during later part of this period, hence the average of
short positions is within $22-$23 range.
In recent trading days after Q1 quarter report, there is a strong
signal that institutions are accumulating the stocks. The stock
has been maintained most at $19+ level. Today's volume plunge during
the morning session tells us it is going to turn around. The big
buy orders were kicked in around noon and the stock starts
rally. At the ending session, short-term holders (daily traders)
moved in to take profits and ended at $19.25. The volume was expanded
to above daily average.
I think the stock can easily break into $20+ level, but with a strong
resistance around $23, near the short positions holding prices. If
the volume continue to enlarge, then the waiting time to get into
$22+ level will be shortened.
Remember, my guesses are sometimes not as accurate as I want.
Phil |
