Home > Apple Trading Strategies > THE APPLE BEAR MARKET OPTIMIZED MOVING AVERAGE UPDATE MARCH 30, 2013

THE APPLE BEAR MARKET OPTIMIZED MOVING AVERAGE UPDATE MARCH 30, 2013

March 30th, 2013

THE APPLE BEAR MARKET OPTIMIZED MOVING AVERAGE UPDATE MARCH 30, 2013

As I stated on March 5th, the Money Flow, Relative Strength, and Ultimate Indicators triggered buy signals for the stock of Apple. Thus, this triple buy signal made it possible to take initial positions in this undervalued, oversold, and unpopular high-quality stock near the absolute bottom around 420. Then the stock rose to an intraday high of 469 which was just above the 50-day Optimized Moving Average at that time. But without a decisive move above this moving average, the stock fell back to its current price of 442.

(Click here for the chart for Apple)

The so-called “Apple Bear Market Optimized Moving Average” currently stands at 462, which is 20 points away. This moving average has served as the cap on three previous rallies in Apple over the past several months and appears to have put a lid on this most recent rally as well.

With the first quarter window-dressing out of the way, it is possible for Apple to challenge the Optimized Moving Average once again. If it fail to push through resistance at such an attempt or simply heads down from here, I would expect a retest of the early March lows around the 417-392 price range. A successful retest could be in store for the stock so I’d start accumulating the stock on any move close to that price area.

Note: The final phase of a market decline is often marked by investor apathy rather than by fear. Those who follow Apple may have noticed how much less talk there is on Wall Street about this stock in the last few weeks. This is a sure sign of apathy in regards to the stock of Apple.

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