Apple 52-Week High Breakout Above $600

Source: courtesy of Apple Inc. Apple Inc. (NASDAQ: AAPL) has hit yet another 52-week high. What should stand out here is that this 52-week high has taken the stock to above $600 again. After closing at $597.51 on Friday, Apple shares hit a high of $607.33 and the stock was at $605.66 with an hour and fifteen minutes until the close.

What investors have to consider now is whether this is a real breakout or just a post-news buyout ahead of that big 7 for 1 stock spilt. At issue is that the 52-week is not an all-time high. In fact, the all-time high in Apple is closer to $705.00 per share.

So, what do Apple analysts think? Their consensus price target is up at $626.93 as of Monday. The stock is valued at 13.7-times expected 2014 earnings and valued at 12.7-times expected 2015 earnings, but keep in mind that they have a September fiscal year-end.

Apple’s stock chart has been a great one since it announced the 7 for 1 stock split. Shares rose from under $530 to $560 instantly after that news, and then the stock rose to $600. Since hitting that mark, $598 or so had been a persistent level of resistance. This is one of those days that gets technicians excited, but it also comes with risk.

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Apple’s 50-day moving average is down at $549.97 and the 200-day moving average is much lower at $520.42.

This is one of those instances where a breakout looks underway. The problem is that charts solely for the sake of charts are a hard sell to the public. They also come with caveats, and technicians and chartists have just as many excuses as fundamental analysts when the thesis doesn’t work out.