Can Apple Punch Through Resistance

By: Mike_Paulenoff

This morning's pre-open down-gap in Apple (AAPL) and spike to 327.49 so far has turned out to be the low for the larger downleg off of the Mar 28 high at 354.34. The spike low, followed by what is shaping up to be a significant upside reversal so far today, also can be considered another test of critical three-month support at 326.50/00 from the day that Steve Jobs announced he was taking a leave of absence.

All of that said, however, it is all about price action, right? And so far AAPL really has not inflicted any damage to its April downtrend (yet). The $64,000 question is whether or not AAPL can punch through key near-term resistance at 334.00-335.25 without first needing to loop down to retest 330.00-327.50?

Rest assured, we will know very soon. For the time being, we remain long in our model portfolio at 331.20.

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By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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