This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple vs. Competitors: A Look at the Charts

NEW YORK (TheStreet) -- Apple (AAPL) introduced its iCloud Monday along with a slew of other products. Although late to the cloud party for virtual tunes, Apple has a reputation of killing the competition when it does show up and this product looks to be solid with the wireless push to keep all a consumer's devices in sync via the cloud.

Other major competitors in the space are Amazon (AMZN), Microsoft (MSFT) and Google (GOOG), but their cloud offerings are minor offerings within their umbrella of products.

But rather than trying to make an argument for or against any of Apple's competitors on the strength of their cloud products, I thought it would be more beneficial to look at the weekly charts for Apple and the competitors and ask: "Which of these companies, if any, should I be invested in during this market weakness?"

Starting with Apple, you can see that the stock has worked sideways since the beginning of the year. The consolidation floor is reasonably large with about a 12% range from top to bottom and appears reasonably strong as a consolidation floor goes.

Apple shares remained trapped in a large consolidation floor ranging from roughly $325 to $355. Consolidations after long moves higher are not bad things. They are typically viewed as basing patterns for a continuation move. With the closing price at $338 Monday, the best bet is to wait until prices move closer to the bottom to stake out a position to the long side. That is where the reward-to-risk favors entry.

To invest in Apple is to invest in a reasonably high probability event. Apple is a huge revenue generator and I doubt that this will change anytime soon. When you add in continued growth, it's hard to see how you can lose on this bet over time.

Microsoft's chart tells another story.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs