AAPL, TWTR update July 27

AAPL: had its second based reaction/gain to earnings (best was on April 25, 2012): $6.28 vs $7.10 (adjusted for stock-split). The weekly chart shows that AAPL is battling with  2 longer term downtrend lines, which it has not been able to break above since July last year: red arrows. Today it broke above the lower (green arrow), but bumped against the upper (orange arrow). However, now all TIs are pointing up and most are not even close to Over Bought as they were  in November last year and April of this year, suggesting price can move higher.

aapl 1

The Daily chart shows the story in more detail as well as that price has now moved above the Ichimoku cloud, which it has not been able to since Late-April. This allows for more upside. Now it needs to close above the upper red trendline to target at least the gap at $109. But it may first want to close the remaining gap at $101 before heading higher.

aapl 2

All TIs are pointing up and today gave renewed buy signals. Bollinger Bands are expanding, albeit price is rather outside and may thus need to move back in first. Support is at $100. Price is now back above the 20d, 50d and very importantly the 200d SMA, which acted as support today. This is bullish.

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TWTR: Went the other way and nose dived. In our earlier update we said we were starting to get bullish on TWTR but wanted to see it break over $21-$22 first to become more certain. It was unable to do so and is now back at mid-teens. We therefore believe price still wants to see the $10ish zone for the major c=a and intermediate c=2.00x a extensions.

twtr

The regular daily TI chart -below- shows we now have sell signals galore on the chart and we can expect price to drop further. Price is now once again below the 20d, 50d and continues below the 200d SMA: bearish. As such we believe the $11-$9 area will be a great long term buy target for TWTR.

twtr 2