Yesterday, we looked at a chart of Restoration Hardware, which has been on a pullback from being overbought.
Today’s Chart of the Day is a Daily Price chart for Apple, Inc. (NYSE: AAPL).
Now, the chart below shows that AAPL has been making a series of 52-Week Highs for the last year.
Stocks just don’t hit 52-Week Highs for a whole year unless they’re in a very powerful uptrend.
We know that stocks in a price uptrend do not advance in a straight line…
And that there are always price retracements along the way…
Looking at the chart, we can see that AAPL has experienced periodic price pullbacks since last year.
Traders can get a lower risk entry point after a 3 to 5% price retracement, as the stock normally resumes its price uptrend after such retracements.
We’ll be sure to keep checking Apple stock as it climbs to new heights, and noting any price retracements.
Editor, Chart Of The Day