By John Kosar, CMT
The chart below is from our August 13th report entitled "Influential AAPL At Major Decision Point." Apple Inc. (AAPL) caught our eye yesterday because $470 per share, which was being negotiated by the market at the time of the report, represented both (1) the upper boundary of a 6-month period of sideways trade and (2) the stock’s 200-day moving average (a widely-watched major trend proxy).
Simply stated, this was a well-defined price level from which the existing bearish trend had to resume, if still intact.
About 90 minutes after our report was distributed, Carl Icahn delivered the following blast via Twitter:
We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come.
Mr. Icahn may not be the King of Twitter, as his 12 tweets to date will attest, but the man sure understands markets and picked a perfect time to fire off Tweet #11. Clearly Mr. Icahn recognized AAPL’s “pressure point” at $470, and also appears to have understood that a little electronic push at the right time could make this previously bearish price chart look a whole lot better by the end of the session – thus attracting even more new buyers.
APPL’s next overhead obstacle is the May and November 2012 benchmark lows at $506 to $522 which, if broken, would clear the way for an eventual advance to $555.
John Kosar, CMT, has 30 years of experience and insight in covering the global financial markets. John spent the first half of his career on the trading floor of the Chicago futures exchanges, where he had the opportunity to learn how the US financial markets work from the inside out. This experience, early in his career, became the foundation for the unique analysis, insight and perspective that defines Asbury Research. John is frequently quoted in the financial press both in the US and abroad, and can be seen regularly on U.S. financial television. Follow him on Twitter: @asburyresearch