The recovery from the post-earnings dip in July is officially complete for Apple (AAPL). On Monday, August 6th, AAPL broke out from a short trading range defined at the bottom by the psychologically important $600 level and at the top by the April post-earnings high. This breakout symbolizes the neutralization of whatever worries prevented buyers from taking AAPL higher after April’s earnings and motivated sellers to take down AAPL after July earnings.
Source: FreeStockCharts.com
Fresh all-time highs are now well in sight for AAPL. Once (if?) those break, the stock will return to that “happy place” where almost every person holding onto a share of AAPL stock is profitable. The dissipation of selling interest and increase in buying pressure should propel AAPL higher at a swift clip.
Be careful out there!
Full disclosure: long AAPL calls