• Chart of the Day: Apple Inc. (AAPL)

    by  • January 2, 2013 2:10 pm • Charts to Watch, Tony Venosa's Chart of the Day • 3 Comments

    Today’s chart is of Apple Inc. (AAPL) which manufactures, and markets mobile communication and media devices, personal computing products, and portable digital music players worldwide.

    Ticker:  Apple Inc. (AAPL)

    What I Am Looking At:

    • Outperformance on a year-over-year basis, +35 percent
    • Short-term trend remains down
    • Facing resistance from the declining 40-day moving average and the downtrend line (blue)
    • Major January call open interest resides at the 550-strike (mostly bought-to-open) which could pressure shares lower if resistance is not taken out quickly
    • Volume by Price indicating possible resistance zone between $580-600
    • 10-day buy-to-open call/put ratio is 1.51
    • For every 147 open calls there remains 100 open puts which is close to an extreme in optimism
    • Since August 2012 short interest has grown by 67 percent but only represents 2 percent of the float
    • 36 out of 38 analysts covering AAPL rate the shares a “buy” or better

     

     



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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

    3 Responses to Chart of the Day: Apple Inc. (AAPL)

    1. January 3, 2013 11:26 am at 11:26 am

      My way, I see AAPL churning for a month or so, but in four months will again be threatening the 700 resistance.

    2. Varun Sahay
      January 2, 2013 6:38 pm at 6:38 pm

      Thanks for the chart? Why are you bearish or what is the bearish case? when I am seeing a bullish reversal. The resistance has to be broken and would you not want to wait a day for confirmation? What are the moving averages that you signify? Are they EMA or SMA? Please clarify the reasons why you choose these moving averages? IF you use the 200 day EMA then apple just broke through it? Thanks for your reply.
      Hey trading and new year

      Varun

      • Tony Venosa
        January 3, 2013 11:13 am at 11:13 am

        Thanks for the reply, Varun. I am not necessarily bearish/bullish on AAPL, I was simply stating some observations I have noticed on the current technical and sentiment picture. I do use SMA, i.e. 40-, 80-,160-,195-, and 320-day. Have a Happy New Year!

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