Back in August 2013 when Apple stock (AAPL) was trading near $70, I wrote an article that discussed the current trend in the stock and its recent breakout out of the basing formation below $65. You can view this article, if you want to, again here:
Just pay attention, that the stock is now trading at a split adjusted level.
Now, what can we say at this moment? As I see it the basing pattern that I discussed with you almost an year ago, has played out well. Here’s the updated chart of APPL:
As you can see, the stock has moved nicely. Even the negative earnings news caused only temporary setbacks. The most recent breakout was in late April of this year when the stock gapped up after a positive earnings news and thus made a breakaway gap on its daily chart.
Now, the trend remains positive and thus one can favor the upside. However, right now it is more difficult to find a low risk entry point in the stock unless you are a very short-term swing trader. Based on your way of making investment decisions, you may decide to invest or not. But from a money management perspective, it is always better to get involved in stocks after they breakout, not after they are extended.
What do you think of this analysis and what’s your opinion of the AAPL’s chart? Please, post your opinion below. I’ll be glad to see what you think.
Trade with the Trend!
Alexander
http://www.Trendrecognition.com
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