Apple News - $AAPL May Hit $600 In January: Investor Place

In a report today from Sam Collins, the Chief Technical Analyst for Investor Place, Apple Inc. (NASDAQ:AAPL) is predicted to hit $600 as early as January.

Apple's Drop

In the report, Collins notes the numerous times he rated $AAPL as a Sell, beginning on October 9 of 2012, when the stock was trading at $638.

Apple was on a downward trend at the time, which continued through December, when he recommended again that investors sell the tech stock, as it had dropped to $510 per share. On February 28^th of this year, he made yet another sell recommendation, giving the stock a target of only $450 to $500 on the downside. At that time, the stock was bringing only $440 per share.

Summer Turnaround

In July, Collins noted that when the stock was near $410 per share, he said, “All shorts should be covered in light of a possible saucer forming. A close above the resistance line at $465 would signal that a long term bottom has finally been established.”

This prediction proved to be true, and in September Collins said, “The bullish saucer formation has continued to develop, a golden cross has formed, and MACD triggered a buy signal. The final bullish signal would be for AAPL to close above the resistance line at $500, but those who wish to take a modest risk could take positions now with a trading target of $570 and a stop-loss at $455. Apple has become a moving target, but a well-placed arrow here could result in a bushel of profits.”

Apple Evens Out

Since September Apple Inc. (NASDAQ:AAPL) has consistently closed above $500 per share. It has remained just under the $540 per share mark, and according to Collins this bodes well for the stock going forward.

He says that a close above the $540 line on a higher volume should boost the stock to the $570 target price set by Investor Place. From there, it is just a short hop to $600, which is the price target he believes Apple will hit in January of 2014.

The chart below illustrates Apple’s movements this year, demonstrating the saucer effect mentioned by Collins.

Whether this prediction will come true remains to be seen. However, in light of Apple’s success with the iPhone 5s and the fact that China Mobile will be launching the iPhone 5s and iPhone 5c in December, a $600 price target does not seem to far out of reach.