by Michael Tarsala
Apple (AAPL) shares broke out to start the third quarter, possibly shifting sentiment to the upside.
Source: Stockcharts.com
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.
