Apple, Facebook, Google: What Next?

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The mania continues for the big 3 U.S. new economy plays. This is the latest on the price action:

Apple (NASDAQ:AAPL) shares have been in a rising trend channel on their daily chart since November, with the floor of the channel currently running through around the $655 level just above the 50 day moving average of $637. The near-term indication of the double unfilled gaps higher over the past week is that we are likely to see any consolidation for the stock come in no lower than the $679 10 day moving average level. Indeed, while about this zone the likelihood is for a top of November price channel target as high as $800 over the next 6-8 weeks.

As far as Facebook (NASDAQ:FB) shares are concerned the key here on the technical front is the way that the initial August low intraday was $19.82.While the shares probed much lower than this going into the start of September heading for sub $18 low, since then we have seen a gap up through that initial August level something which suggests very strong buying interest and a very painful bear squeeze. Indeed, for the late August and September period we have an island bottom reversal formation which is one of the strongest formations known in charting.
While this may not be quite enough to counteract the negatives of the July gap through $25 just year, it has certainly started the rehabilitation of Facebook shares. The likelihood now for the forthcoming week is that if the stock can deliver an end of day close above the 50 day moving average of $22.62 we could see the top of the July gap down filled at $26.73 by the end of next month.

The current position on Google (NASDAQ:GOOG) is in fact in some ways even stronger than that of Apple, something which is not widely commented at the moment due to the mania that we are suffering as a result of iPhone 5. Nevertheless, we have a 50 day / 200 day moving average golden cross buy signal in place on the daily chart from last month at Google and therefore can be biased towards the most bullish of scenarios.
As far as the next 2 to 4 weeks is concerned this would consist of further progress within a July rising trend channel currently based at the 10 day moving average level at $701. The message is that while there is no end of day close below the July uptrend line at $701 we should see a push towards the two-month price channel top at $750 as soon as the end of October.

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