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Apple Shifts to Mojo Status From Value Stock

NEW YORK ( TheStreet) -- Among the mojo stocks on which I focus, the leadership has shifted back to Apple (AAPL - Get Report), after billionaire Carl Icahn recently disclosed a $1.5 billion stake in the company. It appears that Icahn wants Apple to borrow cash to accelerate a share repurchase program. The stock popped above its 200-day simple moving average at $470.44 on Tuesday and then tested $504.25 on Wednesday vs. my annual risky level at $510.64.

Back on September 21, last year, we learned that Apple trees do not grow to the sky following an all-time high at $705.07. This year, Apple shares continued to slide all the way to below $400 in April and again in June.

Back on March 14, I wrote, Apple Wins the Search for Value, with the stock trading at $428.35. The stock had a buy rating, according to ValuEngine, and was 23.9% undervalued. The weekly chart profile was extremely oversold. This defines a value stock, by my methodology.

At the time of this writing, Apple had tested and held my annual pivot at $421.05, with a semiannual risky level at $470.21 and my annual risky level at $510.64.

[Read: <a target="blank" data-add-tracking="true" href=";s=1"><em>Why Cisco Is Cutting Jobs</em></a>]

Today Apple is no longer a value stock, and has shifted back to being a momentum or mojo stock.

The stock has a hold rating, is 10.9% overvalued and Wednesday's high tested the ValuEngine one-year price target at $501.33. Apple can still trade up to my annual pivot at $510.64, but there is also risk back to the lower annual pivot at $421.05.

If the stock can end the week above $510.64, the upside is to my semiannual risky level at $620.84, which will make Icahn and his fellows happy campers.

The weekly chart profile for Apple shows that its 12x3x3 weekly slow stochastic reading is rising at 67.01, which is below the overbought threshold reading at 80.00. Note how the stock held its 200-week SMA at $386.51 the week of June 29. The weekly chart for Apple stays positive on a close this week above the five-week modified moving average at $451.85. The weekly chart below was printed with Apple near Wednesday's high.
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