Chart Pattern: AAPL breakout from Inverted Head and Shoulders with neckline about $460. AAPL also broke the 200D SMA resistance and technically entered into bullish trend. The stock also retraced to retest the neckline support to confirm this is a successful breakout.
Trading Strategy: Short Put Spread.
- Target Entry zone:
- Scenario 1: $470-$480 when AAPL retraces back to Fibonacci Fan support. Currently AAPL is facing the 261.8% Fibonacci Resistance.
- Scenario 2: If AAPL breakouts from current Bull Pennant / Bull Flag (above $510)
- Scenario 1
- STO AAPL Oct 13 480 Put
- BTO AAPL Oct 13 470 Put
- Scenario 2
- STO AAPL Oct 13 510 Put
- BTO AAPL Oct 13 500 Put
- Minimum Price Target : $530 (Inverted Head and Shoulders Breakout Target)
AAPL Intrinsic Value
- Operating Cash Flow = $52,894 Million
- No of Shares outstanding = 908.5 Million
- Beta = 0.98
- Discount Rate = 6%
- No Growth (0% for next 10 years), IV = $443
- Conservative Growth (5% for next 10 years), IV = $563
- Moderate Growth (9% for next 10 years), IV = $709
- Adjusted Growth Rate (12% for next 10 years). IV = $826
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Original post by Marubozu from My Stocks Investing Journey.