Apple (AAPL) Still Has Upside, But Hang on For Now - Cramer
Apple (Nasdaq: AAPL) is indicated for a lower open Wednesday...just don't tell that to venerable stock wunderkind Jim Cramer.
Late Tuesday, Cramer and colleague Dan Fitzpatrick did a little charting for Apple, taking a look at the stock from more of a technical standpoint.
Looking at a weekly chart since 2009, Fitzpatrick said buying of Apple stock has accelerated over the last few weeks, hinting at a potential climax. How? Well, the rally started on weaker volume but then volume jumped as momentum (momo) players stepped in to catch a ride. Over a long-term period, the pattern mimics what is currently happening: shares shoot up and then remain flat or see a little downside as momo players get "flushed out" of the stock.
Despite the tone, Fitzpatrick thinks there could be a break-out for Apple above $526 per share.
In response, Cramer said Apple's earnings power is on a roll and he would recommend stepping in to grab shares on any weakness. But with such a rapid rise recently, Cramer said investors should exercise patience before jumping headlong into the stock.
Shares are just about flat early Wednesday.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
Late Tuesday, Cramer and colleague Dan Fitzpatrick did a little charting for Apple, taking a look at the stock from more of a technical standpoint.
Looking at a weekly chart since 2009, Fitzpatrick said buying of Apple stock has accelerated over the last few weeks, hinting at a potential climax. How? Well, the rally started on weaker volume but then volume jumped as momentum (momo) players stepped in to catch a ride. Over a long-term period, the pattern mimics what is currently happening: shares shoot up and then remain flat or see a little downside as momo players get "flushed out" of the stock.
Despite the tone, Fitzpatrick thinks there could be a break-out for Apple above $526 per share.
In response, Cramer said Apple's earnings power is on a roll and he would recommend stepping in to grab shares on any weakness. But with such a rapid rise recently, Cramer said investors should exercise patience before jumping headlong into the stock.
Shares are just about flat early Wednesday.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- Savient Pharma (SVNT) Moves Higher with Volatility; Bumps Up Against Key Resistance Point
- Corinthian Colleges (COCO) Bounces Off Intraday Lows into Close
- UPDATE: Nomura Securities Upgrades ASML Inc. (ASML) to Buy; Revenue Outlook Underestimated
Create E-mail Alert Related Categories
Insiders' Blog, Momentum MoversRelated Entities
Jim Cramer, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
