Apple (AAPL) looks like it’s time has come to finally make the Appleonians happy.Discussed in this article: Apple Inc ( $AAPL )
I’m looking at Apple ( NASDAQ:AAPL ) today, I haven’t looked at Apple ( NASDAQ:AAPL ) in quite a while, haven’t traded it in even longer than that, but hey, I may be warming up to this name. Look, this is a real simple trade, lower highs here, here’s a big low, and higher low, and higher low still. We draw our little line here, we also notice that these Bollinger Bands, which contain 90 percent of the price action, are really pretty tight here, which means that it’s not going to take much of a move to start pushing above those Bollinger Bands and give us a breakout.
Now, you’ll notice back here in November, look how tight the bands were then, and look what happened. Boom! This is the tightest that they’ve been since November and we’re starting to get a move. Today’s volume wasn’t that high relative to the last couple of days volume, it wasn’t even up to the average of the last 50-days of trading activity, but still the stock is breaking out. So if you’re on “Appleonian” here’s your bogey: you go ahead and buy this stock, you look back here, I’m not looking at the 50-day moving average, I’m looking at the middle of this trading box here, I’m looking at about right here. If the breakout is bona fide, if it’s a bona fide breakout it really needs to stay above about 530.00 on any pullback. If it starts falling in through like the midline of the box, then the breakout is more of a fake out, it’s kind of a bull trap, so don’t go there.
I don’t have any sense of whether this breakout is going to continue, but I will tell you that it’s got some pretty nice upside momentum. Stochastics, which are a momentum indicator, are starting to float higher, this is a stock that you could take for a ride for a while. Yes, it’s Apple ( NASDAQ:AAPL ), maybe it’s back. Do I think it’s going to return to the glory days here? Maybe, but his year, not a chance, for now I think this is a really nice potential trade to the upside.