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Apple Soars as Christmas Sales Begin

David Becker
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Friday started the Black Friday shopping season with consumer weighting on huge lines to burst into retail stores late on Thursday and early on Friday. The shopping season has 4-fewer days in 2013 forcing retailors to open earlier and close later during this holiday season. There are many exciting product this year and Apple (NASDAQ:AAPL) is at the forefront pushing their new iPhone and iPad products.

Retailers are pushing Apple products and are offering crazy deals on Apple’s first-generation iPad Mini. On Black Friday, Target is giving $75 gift cards when you buy an iPad Mini, dropping the effective price to $224 for the entry-level model. Wal-Mart was reported offering a $100 gift card with the purchase of an iPad Mini at the regular price of $299 on Thursday evening, knocking the price down to $199. Target also is offering discounts on Apple iPhones, iPod Touch media players, iTunes gift cards and Apple TV set-top boxes.

Apple’s stock price lifted off on Wednesday breaking out above resistance near 535. The next level of target resistance for the electronics retailer is $600. Momentum on the stock is strong as the MACD (moving average convergence divergence) index generated a buy signal. This occurs when the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal.

The RSI (relative strength index) which is an oscillator that measures overbought and oversold levels is printing near 69, accelerating with price action reflecting increasing momentum. A close above the 70 level would signal a warning to investors that the stock price is overbought and could correct in the short term.

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