Apple near Resistance

Published on Wednesday, 22 February 2012 05:48 Written by TradersHuddle Wire

New York, February 22nd (TradersHuddle.com) - Shares of Apple, Inc. (NASDAQ:AAPL) are trading very close to calculated resistance at $526.29 with the current price action closing at just $514.85 placing the stock near levels that make it difficult to buy.

Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets personal computers, tablet computers, mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, and a variety of distribution channels. Apple through its ITunes store sells third party music and video content, its applications store sells Apple's own and third party software applications for its iPhone iPad, and iPod products.

Apple's current stock range is defined by current calculated support defined at $486.63 and by the resistance level at $526.29, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Apple, as the stock is well above support, however, as the stock pulls back towards $486.63 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $526.29 then traders will get an opportunity to enter Apple stock by establishing a position as the stock moves to a higher range.