The rally has reached the mezzanine level (p=193.18) after tripping a ‘counterintuitive’ buy signal at 181.72 on June 5. Progress above p has been weak so far, suggesting that a possible climb to the 216.08 target won’t be easy. However, my gut feeling is that bulls will get there, even if most of the fuel for the climb will be provided as usual by short-covering bears. A pullback to the green line would offer us a belated opportunity to get long ‘mechanically,’ although the trade would look more enticing if the retracement comes from slightly nearer 200. _______ UPDATE (Jun 19, 10:16 p.m.): The stock hit 200.29 today, fulfilling the first of two conditions needed to set up a mechanical buy at 181.72. _____ UPDATE (Jun 20, 11:28 p.m.): Ignore the ‘mechanical’ trade outlined above, since it’s just a distraction at this point. The stock is bound most immediately for 205.51, a Hidden Pivot rally target shown in this chart. _______ UPDATE (Jun 24, 9:42 p.m.): If 205.51 is easily exceeded, use 209.12; and thence, 216.08.
AAPL – Apple Computer (Last:198.54)