Is Apple At A Triple Top? Scott Redler Weighs In
Scott Redler is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.
Scott Redler, chief strategist at T3Live, said on Benzinga's #PreMarket Prep that bears are calling for a triple top in Apple Inc. (NASDAQ: AAPL). However, he said that "you don't see many triple tops out there."
Instead, the strategist said he would look to trade Apple from the long side, particularly if it moves towards the $131.45 area. That would provide bulls with "cheer." Conversely, if the stock were to close below last week's low of $129.10-129.19, it might encourage other short-term traders to become "actively bearish," Redler said.
Related Link: Apple's 'Small Experiment' To Match Amazon.com
Redler said that he hasn't been in Apple since May, when a large "bar down" caused him to sell his long position. From a technical perspective, Apple is at the upper end of a wedge formation, suggesting that the price might break out in one way or another, Redler argued.
According to Redler, a break above resistance at $133 should allow the stock to move towards highs above $134 and beyond. Since hitting its all-time high of $134.54 in February, Apple has traded as low as $122.24 in March. Apple re-tested those highs in both April and May, before retreating lower on both occasions.
The stock has gained more than 18 percent year-to-date.
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