Apple's Chart is Telling Traders It's a 'Buy' Right Now: AAPL

After its notable rally off the late June lows, Apple (NASDAQ: AAPL) began to top out in the second half of September. After trading sideways to slightly lower for a couple of weeks, the stock gapped down 5.6% on the morning of Sept. 11, the day after it announced of a fresh batch of iPhones.

Last week, however, AAPL found support near its 100-day simple moving average and the 50% retracement level of the entire June-to-August rally. The odds now favor a resumption of its uptrend. Furthermore, with the company's next earnings announcement scheduled for Oct. 24, traders have a few weeks to potentially play the stock from the long side without any news to shake things up.

Personally, I have found great success swing trading AAPL, as it seems to respect technical patterns particularly well in two-to-three-week time frames. Additionally, given the strong emotional attachment many investors have to their positions, the stock often displays basic trend breaks and candlestick signals that offer great trade setups. (more)

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