A week ago the Power of the Pattern reflected that Apple was facing 30 & 20-year resistance as well as its 261% Fibonacci extension level, around the $520 range (see post here)  Below is an update on how Apple has handled these resistance levels…



A basic technical analysis principle is to…”Buy breakouts!”  The above chart reflects that Apple has broken above its 30 & 20 year resistance lines as well as its Fibonacci extension level at (1). 

How big could Apple get?  From a Fibonacci Extension perspective, the next key Fib level comes into play around $840 per share

Does this price target seem a little high?  I don’t know if or when Apple will reach this target I do know that buying breakouts with trailing stops has helped investors enlarge portfolios in the past! 

Does $840 sound high?  I suspect that $430 sounded high back in July 2011, when Apple was trading at $340 per share!  At that time the Power of the Patten suggested Apple could reach $430 per share on a breakout.. (see post here)

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past