Apple Woke Up the Exxon Mobil Tiger and it is Roaring

• Posted by Greg Harmon
• on October 13th, 2011

Not too long ago the financial press and blogosphere made a big stink about the market cap of Apple ($AAPL) surpassing that of Exxon Mobil ($XOM). This looks like it was the wake up call that Exxon Mobil needed to pull out of its malaise. And now if it can move just $1.50 higher it will retake Apple to be king of the market cap hill. Signs in the charts suggest it will happen.

Monthly Chart

The monthly chart above shows a Hammer candle from September being confirmed higher with a bullish engulfing candle in October, mid way through the month as it had pulled back to the 50 month Simple Moving Average (SMA). The Moving Average Convergence Divergence (MACD) indicator which looked like it would cross negative now appears like it kiss off the zero line. Also notice that the Relative Strength Index (RSI) held above 50 and is turning back higher.

Weekly Chart

On the weekly chart it broke above a 9 week consolidation range basing off of the 100 week SMA and is moving higher. The MACD on this timeframe is about to cross positive and the RSI is moving back over the 50 line, both supportive of further upside.

Daily Chart

Finally the daily chart shows the break higher over resistance, now stalling at the 100 day SMA. But with the RSI trending higher and the MACD positive all three timeframes point to an eventual retest of the previous high near 87.50 and be king of the hill. At that level Apple would have to reach 464 to keep pace.

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