AAPL | Apple Breaks Downtrend Line

Apple (AAPL) managed to break above its downtrend line this week:

AAPL

This is actually quite bullish for Apple. Does this mean Apple is coming out of its downward trend and will resume the rally back to $700?

It is hard to say. However, I’d still remain cautious about buying. Usually markets tend to “re-test” their breakout point or previous lows (double bottom) before reversing into an uptrend. So a re-test of the lows near 400 or 390 should not be ruled out.

Furthermore, I am also cautious about buying stocks in general as we are nearing a correction. The Nasdaq made new all-time highs today and while that is bullish for stocks, it usually precedes a correction.

More on that in the next soon…

Alessio Rastani
www.leadingtrader.com

Comments are closed