This Day On The Street
Continue to site
ADVERTISEMENT
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

It's Apple's Blossom Time and the Company Is Popping

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs