Author: Michael Arold
Covestor model: Technical Swing
Disclosure: No position
I like Apple.
If I were a long-term investor, I would have it in my portfolio.
But as a short-term trader, I need to keep an eye on the stock's individual trading characteristics.
For Apple (AAPL), it is very typical to consolidate gains over relatively long periods and at one point surprise everybody with a rally.
These consolidation periods can take more than half a year!
So far, the stock is just two months into its recent gains digestion, so I would actually be careful chasing the stock at this point on strength.
Alternatively, it can make sense for position traders to scale into the trade.
Here's a weekly chart, from the past four years. Note the long sideways moves: