There's a thinly followed NASDAQ tech name that you may have
read something about. The stock's name is Apple (NASDAQ:
). The company makes a line of tech products-enough of the
sarcasm. The amount of daily Apple news is dizzying, isn't
Tuesday's big Apple news is that it filed a patent for a
pimped-out splitter. You know-two people can watch or listen to
the same content. No doubt that it's cool but this is what the
Apple media chooses to salivate over?
Of course, all opinions are subjective but here are two pieces
of Apple news that might actually mean something to
Another Key Resistance Level Reached
Even the Apple permabear can't deny that its move of late is
impressive. The stock has now added an impressive 17 percent of
upside since its $390 bottom.
The stock reached a March 24 high of $463.58 but failed to
break through that level causing a breakdown that eventually
brought the stock to its $390 low. Now, at $460.71, the stock is
poised to test that $463 resistance level. A solid breakout with
volume would clear it to test $479 and later, $511.
It's Ex-Dividend Week
On May 9, this Thursday, Apple will go ex-dividend. There is
talk (albeit, very little) that some portion of this rally has to
do with accumulating shares ahead of the dividend. As investors
know, the stock should adjust to reflect the upcoming payout but
there are a lot variables associated with such an assumption.
The stock could continue its rally effectively absorbing the
small amount of sellers who were sticking around only to capture
the dividend. If the trickle of voices are right and there is a
significant amount of traders in the name solely for the
dividend, it could put the brakes on the rally.
Is it likely that the latter is true? No, but if you're
trading Apple volatility, May 9 is a significant event and one to
During the March rally, there wasn't much confidence expressed
from technicians because it wasn't accompanied by volume. This
time around, volume has accompanied the move. However, volume has
dropped off since the beginning of May signifying that longs
might be tired.
Monday was a little more impressive but still below levels
seen even in the March rally. No reason to get too concerned yet
but with the RSI at 66, it's probably time to become a bit more
Disclosure: At the time of this writing, Tim Parker was long
Apple and still not convinced that the pain is over.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information
you need to invest better today.
Click here to start your 14 Day Trial of Benzinga