$AAPL

(Click chart to enlarge)

(Click chart to enlarge)

Apple started peaking its head above the long descending trendline from its all time high of 705.07 on above average volume.  Full stochastics are showing life, indicating there may be more upside short term.  It broke and held above Monday’s (3/11) highs, closing at the high of the week with a strong rally into the close on Friday.  Since its all time high, Apple has decoupled with the overall market as $DJI, $COMP, $SPX are all on their highs and $AAPL is on the lows of the year.  With that being said, even if the general indices have a slight pull back to work off overbought indicators, Apple could still power higher of its lows.  Next resistance levels come in at 451 and 460.5.

Heading into next week, Mar 22 440 calls have 7,408 in OI vs. 1,098 OI in puts.  445 calls have an OI of 3,317 vs 305 in puts and further OTM, 450 calls have the most in open interest with 11,054 vs. 1,184 for the puts.  The option chain shows the same trend in further out expirations.

I’m not calling this a bottom, but things are certainly looking much better for Apple. Disclosure: No position, looking for a long position over Friday’s highs on a gap down, or first pull back on a gap up.

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