Chart of the Day – $AAPL Ahead of WWDC

by Enis June 10, 2013 10:22 am • Commentary

With heightened focus on AAPL stock ahead of the conference keynote at 1pm EST today (AAPL will be live-streaming Tim Cook’s keynote today at 1pm eastern: need to be on safari or iOs device), I wanted to look at AAPL’s chart so far in 2013:

AAPL daily chart in 2013, Courtesy of Bloomberg
AAPL daily chart in 2013, Courtesy of Bloomberg

To my eye, there is no reason to make this complicated.  AAPL has obvious resistance around 465, and clear support around 420, and it has been rangebound since its earnings bottom in late April.  However, despite the nice bounce since then, owners of AAPL since the start of 2013 are still more than 10% underwater.

Put it all together, and I still see a rangebound situation in AAPL.  There is no rule that says that a stock has to go higher or lower.  In AAPL’s case, as long as it remains in that range, I am not a fan of playing for breakouts in either direction prematurely.  That’s why we still prefer short volatility trades, similar to the Name That Trade that Dan laid out on Friday.