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On Feb, 5, I wrote
Bobbing for Apple, Amazon and Google Shares
and presented my three-pronged analysis for these three benchmark investments and trading vehicles.
The first prong of an analysis is the fundamental screenings according to
. The second is looking at daily, weekly and monthly chart patterns. The weekly chart profile is the most important. The third is my "buy and trade" parameters: Where to buy on weakness -- prices called value levels -- and where to sell on strength -- prices called risky levels.
Apple ($431.14) set a 52-week low at $419.00 on Monday, holding my annual value level at $421.05, which was presented in my Feb. 5 post as the next value level at which to buy on further weakness.
Apple still has a buy rating, is 24.0% undervalued with a twelve-month forward P/E ratio of 8.95, which makes the stock a value play, not a momentum trade as it was until the stock traded above $700 on Sept. 21, when it reached the ValuEngine one-year price target at that time. Today's one-year price target is $463.54.
The weekly chart profile remains extremely oversold with a 12x3x3 weekly slow stochastic reading at 11.30, well below the oversold threshold of 20.00. The 200-week simple moving average (SMA) is $363.75 with the five-week modified moving average (MMA) at $462.80. My weekly value level is $397.60 with annual pivot at $421.05 and semiannual pivot, now a risky level at $470.21. My annual risky level remains at $510.64.
Chart Courtesy of Thomson / Reuters