Here’s your setup for Apple (AAPL)

Discussed in this article: Apple Inc. ( $AAPL )

I want to do a quick take on Apple ( NASDAQ:AAPL ) because they announce earnings after the bell tomorrow; this is really easy, really simple. Watch $390.00; that was about the low here, give or take, same thing here. So we’ve got potentially a double bottom or not.

Frankly, depending on what earnings are, how the market reacts to them tomorrow night, this stock is either going to stay above 390.00 or it isn’t. Either way I think this stock is probably something that you want to buy on any kind of weakness. If it trades higher after earnings that’s another story, that’s not really what I’m talking about here.

We’ll just say that right now the trading range is a wide trading range, between $390.00 and about 465.00; that’s a big trading range. But the stocks right in the middle of it right now, so frankly if the stock gaps up I would be less inclined to buy it just because there is so much resistance, there is so much resistance on this stock.

But if the stock instead craps, then I think you want to be buying it down here. This, to me, looks like a base that is just about done being formed. So this earnings announcement tomorrow after the bell is going to be a big deal and I will want to be buying this stock on any kind of dip that we get.

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