Apple (NYSE: AAPL) has rallied by over 8% this month, however, this could just be the start of a rally. APPL closed 3% lower after rising for eight consecutive sessions, thus a small pullback could be seen before AAPL breaks out. The pullback could be a great entry point for investors who missed the previous rally, however, investors must be patient and wait for the right entry point. Investors are expecting a new all-time soon, however, will AAPL hit a new high before the year ends?
What the charts are pointing towards-
- AAPL has been in an uptrend wedge since March, and after a recent rally, it is now at the upper trendline.
- AAPL tried to breakout earlier this week however it got rejected, nevertheless it has weakened the resistance and a breakout could be seen at the next attempt.
- A breakout above $161 was seen on Monday however the sellers pushed the price back down, this could have been due to profit booking from the recent rally.
- The RSI was in the overbought zone when AAPL tried to break out, however, after the pullback the RSI is back down and a breakout could thus be seen.
- AAPL could retrace back to the Fibonacci 61.8% level which is at $153, and if a reversal is seen a long entry could be taken. However, a long entry should only be taken if a reversal is seen, as AAPl could also correct to $150.
- Huge buying could also be seen earlier this seen, this is suggesting that a strong breakout could be seen very soon.
- A target of a new all-time high could be set, however investors must be cautious and set a stop-loss before the zone at $148.
The post Should you buy Apple stock as it nears a breakout? appeared first on Invezz.
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