Apple Is Close to Resistance

Published on Monday, 25 June 2012 05:44 Written by TradersHuddle Wire

New York, June 25th (TradersHuddle.com) - Shares of Apple, Inc. (NASDAQ:AAPL) are trading very close to calculated resistance at $588.50. The stock ended the trading session at just $582.10, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $548.50 and by the resistance level at $588.50; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Apple. However, as the stock pulls back towards $548.50 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $588.50 then traders will get an opportunity to enter the stock as it moves to a higher range.