Apple’s chart makes a key move to start Q3

by Michael Tarsala

Apple (AAPL) shares broke out to start the third quarter, possibly shifting sentiment to the upside.


The shares need to close well today for the pattern to be meaningful.

If that happens, Apple will have broken out of a 3-months sideways range. That’s important because it clears the way for a possible run at the April highs.

I am not sure that this move says anything in particular about expectations for earnings later this month, or the iPad 5 launch, expected by fall.

But I do think it clears a hurdle and sets up potential upside in coming months.

Of note, manager Robert Freedland of the Buy and Hold Value model thinks Apple is a bargain, trading at less than 11 times forward earnings, and a PE/G ratio of less than 0.6.

And Freedland does believe that the iPhone 5 could be a stock catalyst.