Is Apple (AAPL) Ready to Breakout?

AAPL Technical AnalysisOn June 30th, I dug into the charts and inquired about the possibility of an AAPL double bottom pattern.  To be fair, I didn’t have a position in Apple (AAPL) and was simply sharing an idea with the community. At the time, the stock was trading at $396 and the setup was tenuous, at best. Fast forward to today, and active investors are wondering if an AAPL breakout is in the cards. Let’s take a look at the chart.

Since my last update, AAPL is up roughly 60 points. The bounce has given life to the double bottom setup, but still has some work to do: It needs to breakout. For an AAPL breakout to occur, the stock must first get past $460-$465.  This cluster represents lateral resistance and aligns with the .236 Fibonacci retracement of Apple’s fall from grace. Note that successful moves above the .236 retracement often lead to trend changes. That said, time frames matter and active risk management is key to following a trend (short or long term). If AAPL is unable to breakout above $460-$465 with this attempt, bulls will want to monitor $430-$440 closely. This area represents the top of the July gap higher, as well as allowing for room to retest the AAPL breakout above short-term trend line (yellow dotted).

Lastly, let’s look at some price targets for an AAPL breakout above current price resistance. The first mini-resistance would be the 200 day moving average. Above that is $510, a magnet zone that represents the January breakdown, as well as the .382 Fibonacci retracement. Note that not all breakouts are created equal (i.e. head fakes), so be sure to always have a plan that incorporates risk management (i.e. stops).

Thanks for reading.  Trade safe, trade disciplined. 

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AAPL Technical Chart Is an AAPL Breakout in the Cards?

AAPL breakout chart analysis

Twitter:  @andrewnyquist  and  @seeitmarket

No 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.