As we covered in more detail last month, after spending the balance of 2013 consolidating lower, the stocks ran throughout the Summer from below $400 to above $500 (also see Andy Nyquist’s note on this level here); only to be slapped back hard in early September by the gap resistance left over from January to a low near $440. Undaunted, $AAPL has moved back through the balance of the 400s over the past 6 weeks, slicing effortlessly through September’s resistance and now sits just atop $525 in the hours before we hear from Cupertino.
Ahead of Apple Earnings (AAPL) – Weekly Chart: The Way To $600 May Prove Very Challenging
Apple could use some earnings-driven therapy here. Above $525, the stock is faced with a complicated technical inheritance that it needs to get past to mount anything vaguely resembling a credible challenge to its all-time highs of last September. Price – the many gaps and volatility of March 2012-January 2013 – can have a long and haunting memory, leaving behind a complicated legacy of support and resistance. If late August/early-September’s respect of January’s gap is any indication, it could be a bumpy ride from here.
How willing the market is to work through its complicated recent history with the stock will determine if Apple’s upward momentum is given a lasting second chance.
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