2 Apple Charts This Expert Is Tracking

Eagle Bay Capital’s founder and Market Technician JC Parets tracks thirty Dow stocks every week. Looking at last week’s –and last Friday’s- chart for Apple Inc. AAPL, the expert and his team draw a few conclusions.

The weekly chart shows that structurally, shares of Apple are “in a solid uptrend.” In February the stock hit the firm’s upside target near $129 “based on the 161.8% Fibonacci extension of the entire 2012-2013 decline.”

In addition, they see “momentum is putting in a bearish divergence at these new highs. This continues to suggest taking profits until it digests these gains further and approaching this more from a tactical perspective” (see daily chart below).

Parets adds that, “with an upward sloping 200 week moving average and relative strength in a strong uptrend,” he sees little reason to be short. He assures he would continue to wait for more data before acting on this again.

Regarding last Friday’s action they comment: the stock hit Eagle Bay’s upside target in February, near $129, “based on both the weekly price objective as well as the 161.8% Fibonacci extension of the November-January decline.”

Parets says that he sees little do until he sees more data and/or consolidation of these gains, for Apple continues to struggle with the $129 level. “With an upward sloping 200 day moving average and momentum in a bullish range I see little reason to short this,” he adds. “I would prefer to wait for more consolidation and buy a breakout above the 3/19 highs above 129. Until then we wait. We do not want to own AAPL if prices are below the 3/19 highs.”

Shares of Apple are up about 2.2 on Monday afternoon, after losing 1.85 percent last week.