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.
