Shares of Apple (AAPL) hit a record intraday high of $683.29 on Monday morning, before bouncing off that peak to trade in the high $660s leading up to today's highly anticipated event in San Francisco.
Technical analyst Tom Kee of Stock Traders Daily puts fundamentals like product launches aside, and follows what the charts show him. Earlier this year he had a bold short position in Apple; making the short call at $611 in late April before shares dipped to $523. Unfortunately he didn't cover his bid and two months later Apple recovered and set a new year-to-date high of $644 in mid-August.
"That short is now off the table and the chart pattern is telling me that we might see $775 out of Apple," says Kee. "Unless it breaks down below what is now a converted support level, we're looking at higher levels."
Kee's converted support level is in the $640s. This was the original stop on his short position, and is now a targeted entry point. He explains the up channel and how he's connecting the dots of the chart below in the attached video.
"Our position is neutral, so we're not in Apple either long or short," he qualifies. "But if somebody were to be interested in buying Apple, I would do it somewhere near that $640 level if you can. Maybe you nibble a bit here because it may not fall back down to $640."
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