Apple’s stock has spent the past few months consolidating some big gains. And the consolidation range has been wide and tradable for those that are more active. But as Apple Inc. (AAPL) nears its all-time highs again, investors are busy debating whether slowing momentum will lead to a top. That’s a valid question and long-term investors will need to watch price indicators closely to determine exposure.
This past February, I highlighted 3 Things Apple Bulls Need To See. In that post, I highlighted a bullish consolidation and breakout pattern that had been occurring on the weekly chart. This pattern (or series of patterns) is exactly what bulls want to see in any security they own. Below is an updated chart.
Price has flattened out and the slowdown in momentum shows up in the RSI divergence. But, price is what matters here. The stock is still in an uptrend and testing all-time highs. A breakout would confirm the trend, while any move under $120 would be a red flag.
Apple Stock (AAPL) Weekly Chart – The 2013-2015 Bull Market
Looking at a near-term daily chart, you can see the consolidation/pullback and breakout pattern from January/February. The consolidation pattern is getting a little long in the tooth (March/April/May), but AAPL is nearing all-time highs again. Will the pattern repeat with follow through to the upside. This retest is important near-term, and potentially intermediate term. Â Also note that the retest of highs for Apple stock comes at the same time the NASDAQ Composite is testing its April highs.
Apple Stock Chart – Daily
Thanks for reading.
Twitter:Â @andrewnyquist
The author does not have a position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
