Apple Trying to Break Free

Published on Wednesday, 16 December 2009 11:00 Written by Christopher Lynn

New York, Dec 16^th (TradersHuddle.com) – Shares of Apple Inc (NASDAQ:AAPL) were trading fractionally higher, this morning as the overall market awaits the fed decision.

Apple shares have been under pressure since reaching its peak back in September with unsuccessful re-test last October by failing to break $208 and make new highs.

For the last few trading sessions Apple has been able to hold the 50 day moving average around the $195 level, however is evident that the stock is entering a dormant period where momentum buyers will not come in until it breaks a significant level, and value investors still continue to believe that the stock can be bought at a lower price.

This past week had two analyst notes providing some boost to Apple’s stock price, the first one was early in the week and didn’t help Apple shares. The second analyst note came from Oppenheimer last Wednesday that stated that the release of Apple’s notebook was expected to be a game changer in the space, something similar to what happen when the IPhone was released. None of these analyst comments were able to break the cycle in Apple.

Technicians will be looking at $197 and $200, as important levels, however all eyes are set on $208, which until broken there will be a small amount of momentum buyers interested in getting the stock.