Saturday, May 18, 2013

Apple looks to be setting up for a move higher.

After a very steep fall from grace, everyone is now wondering if Apple has put in a bottom around the 400 mark. With the market soaring I think Apple could be positioning for a significant move higher, and the charts are starting to reflect this. I'm looking to take a long position some time this week.

Let's take a look at the daily chart.

I think it could still need some time to consolidate further. A few days of trading sideways along the 50 day moving average would be ideal. Possible positions include the 440 June 7 Weekly Calls. I may go with a higher strike for more leverage.