Going to the Apple Store?
After several weeks of weakness, AAPL stock is finally soaring again, up nearly 10% after a blockbuster earnings report.
So far today it is staying above the 61.8% fibonacci retrace as well as the key psychological level of $600, all good signs:
But for Apple to continue up to new highs, the market is going to have to follow along, it can't be all Apple's doing.
An ideal scenario would be some pulling back to the $600 level, and even below it, filling some of today's gap. That would be a safe place for buyers to step in and propel the stock higher.
It's unlikely that a short squeeze alone can really propel us higher lastingly, because who in their right mind would be shorting Apple for any more than a very tentative trade??
If Apple does continue higher without a rest, it is going to have to clear and prove support at the last level to receive major selling, at $620, which is also the 76.4%/78.6% fibonacci level.
If it can clear that, $700 is most likely in the cards, and in fact would be precisely the 161.8% fibonacci target of this consolidation move! Making it a fairly likely place for another struggle and top.
But, strong stocks like to blow past the obvious places, and reaching the 200% level of $735 would not be surprising, and of course $750 has a very nice psychological ring to it.