December 12, 2012 (10:30 pm)

On CNBC’s “Talking Numbers” segment this afternoon, Richard Ross of Auerbach Grayson was discussing how he viewed Apple’s chart as a sign of positive things to come. He brings up two key points that I’ve discussed over the last few days. First, the three year rising channel that shows us testing the bottom trend line. Second, the head and shoulders that has fully formed over the past year.

“Right now our charts are telling you: you want to hang in there, you want to be a buyer. When we look at that long-term weekly chart, we’re all familiar with the 25% pullback to key support at that well-defined three-year trend line. But what I love about this chart, is the failed “head and shoulders” […] when you don’t break below that neckline, that’s the key to the pattern. That neckline, key support around $530, that sets you up for a contrarian buy signal, a springboard to higher prices. Look for a re-test of the 200-day [MA] around $600, a test of that left shoulder around $640, and ultimately a re-test of that high back around $700.”