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…
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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)