i'm looking at apple ( nasdaq:aapl )today, i haven't lookedat apple ( nasdaq:aapl ) in quite a while, haven't traded it in even longer thanthat, but hey, i may be warming up to this name. look, this is a real simple trade, lower highs here, here's a big low,
apple aapl stock price, and higher low, and higher low still. wedraw our little line here, we also notice that these bollingerbands, which contain 90 percent of the price action, are really pretty tight here, which meansthat it's not going to take much of a move
to start pushing above those bollingerbands and give us a breakout. now, you'll notice back here in november,look how tight the bands were then, and look what happened. boom! this isthe tightest that they've been since november and we're starting to geta move. today's volume wasn't that high relative to the last couple ofdays volume, it wasn't even up to the average of the last 50-days oftrading activity, but still the stock is breaking out. soif you're on "appleonian" here's your bogey: you go ahead and buythis stock,
you look back here, i'm notlooking at the 50-day moving average, i'm looking at the middle of this tradingbox here, i'm looking at about right here. if the breakout is bona fide, if it's a bonafide breakout it really needs to stay above about 530.00on any pullback. if it starts falling in through like the midline of the box,then the breakout is more of a fake out,it's kind of a bull trap, so don't go there. i don't haveany sense of whether this breakout is going to continue,
but i will tell you that it's gotsome pretty nice upside momentum. stochastics, which are a momentum indicator, are starting tofloat higher, this is a stock that you could takefor a ride for a while. yes, it's apple ( nasdaq:aapl ), maybe it's back. do i think it's going to return to theglory days here? maybe, but his year, not a chance, for now i think this isa really nice potential trade to the upside.
