With AAPL just inches from achieving the 150.24 rally target we’ve been using to surf the trend, it’s time to examine still-more-bullish scenarios. With last week’s spike higher, the stock broke out above a long-term target at 144.56 (see inset) that was based on a pattern dating back to the start of the bull market in 2009. To project an even higher target, I have simply taken the C-D leg of this pattern and treated it as an ‘extension’ of the completed pattern (click here for chart). It projects to 168.46, implying we are about to see a rally of about 13% from these levels. Judging from the way AAPL speared the 128.91 midpoint resistance, 168.46 seems very likely to be achieved. This is notwithstanding Friday’s stall almost precisely at the 148.71 ‘secondary’ pivot of the extension pattern. Although that could prove to be the end of the bull market in theory, it seems improbable. In any event, you should trade the stock with a confidently bullish bias until such time as 168.46 is hit, using pullbacks to the relevant Hidden Pivot levels shown (i.e., at p or x of the extension pattern) to generate ‘mechanical’ buy signals. Stay tuned to the chat room for guidance in real time when appropriate, since we may be able to convert these signals to ‘camouflage’ entry triggers with the potential to reduce entry risk to literal pennies per share. _______ UPDATE (May 8, 6:47 p.m. ET): The stock continued to shred its way higher, hitting 153.70 intraday. With this decisive thrust above the 148.71 ‘secondary pivot,’ the level can potentially be used to set up a ‘mechanical’ buying trigger. First, however, in accordance with our rules, AAPL will need to hover above it for at least three days. For now, let’s sit back and see how this plays out. _______ UPDATE (May 9, 6:44 p.m.): Not much ‘hovering’ going on here. After trapping shorts on a gap opening, the stock still managed to hold onto a small gain on the day. It now looks like a good bet to achieve the 168.46 target shown (click here). _______ UPDATE (May 10, 7:38 p.m.): AAPL would need to fall below 151.19 straightaway to threaten the very bullish look of the intraday charts.
