AAPL 8/23/2013 Daily Analysis

Sets of bull flags.

Since beginning of this bullish run, there has been multiple bull flags. I graphed the last 3 bull flags.

The first one was after an 8 day run ($18 mini-rally). The bull flag lasted 4 days, was confirmed by a gap up with high volumes
The second one was after a 9 day run ($31 rally). The bull flag lasted for 5 days, was confirmed by high volumes
The third one occurred after a 6 day run ($50 rally). The bull flag is currently 4 days long. It has yet been confirmed (still in consolidation phase).

I still think there is a plenty of room upward. The support at $500 was tested multiple times this week, and held each time so far. Sellers don't seem to be well committed. There is no reason to be short here at this time. Looking at the lower graph, the RSI has been nicely held each time at the end of each flag pattern (diagonal line), and currently, we are still above the support line.

As we are approaching the support line again on RSI, I expect additional pressure to push the stock up higher. After 4 days of attempts, bears still can't consistently break $500 mark. Fundamentally, there are plenty of potentially positive things yet to be confirmed (China Mobile deal, Iphone event invites, upcoming products, etc.). Also, we are seeing more upgrades from analysts.