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 www.ValuEngine.com. 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
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