Chart of the Day: Apple Is in Need of a Brief Rest
The stock has moved amazingly well over the past month but is overdue for a pullback.
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We never like to tell a stock what it should do, rather we just let the chart advise us how to proceed. Certainly the chart of Apple AAPL has been on fire for the past month, exploding higher on massive turnover in June (arrows) and follow-through.
The move since then has been historic, a nearly 23% rise from low to high in just over a month, one of the best moves ever for Apple. But as we know, at some point the stock is going to take a rest and that may be coming up. Earnings for the previous quarter will be out soon.
For now, the stock appears to be correcting, or at least wiping off the froth from recent highs. This is very normal action, though, and seeing the pullback in the Moving Average Convergence Divergence (MACD), stochastics and parabolic SAR confirms Apple is indeed due for a brief rest.
Money flow remains strong, and the candles at the top are still bullish and have been for more than three months.
We rate Apple a Two in TheStreet Pro portfolio.
At the time of publication, TheStreet Pro Portfolio was long AAPL.
