NEW YORK (TheStreet) -- It's the time of the year for apple blossoms and Apple
(AAPL - Get Report) the company to blossom.
Apple has returned to momentum status thanks to earnings that beat analysts' earnings per share estimates. The company had been in a sideways-to-down trading pattern since setting a 52-week intraday high of $575.14 on Dec. 5. The stock, now at $566, is up nearly 1% for the year to date.
Today's breakout above a sequence of lower highs targets my annual risky level at $586.06. The key on recent share price weakness to $511.33 is the stock stayed above its 200-day simple moving average on April 15 and closed that day above my annual pivot at $517.05.
Apple beat on EPS by a solid $1.41 a share, earning $11.62 as net profit rose by 7% to $10.2 billion with revenue up 4.7% to $45.6 billion. The company also raised its quarterly dividend 8% to $3.29 per share. Investors like share buybacks and Apple increased their planned buyback program by $30 billion to $90 billion.
In an effort to qualify as a potential component of the Dow Industrial Average, Apple announced a 7-for-1 stock split to take effect on June 9.Let's look at the daily chart for Apple: Courtesy of MetaStock Xenith The blip to the upper right of the daily chart for Apple shows the breakout above the down trend going back to Dec. 5. Going into Wednesday's after the closing bell the stock was below its 21-day and 50-day simple moving averages at $530.58 and $531.30 and these levels now at $531.66 and $531.93 swing to become supports.