If bigger is better in the tech sector right now, it shouldn't come as any surprise that the $810 billion market cap Apple is leading the charge. Apple shares are up 34% so far in 2017, contributing a meaningful chunk of the overall market's upside because of its sheer size. But don't worry if you've missed out on Apple's record-breaking rally, its chart is signaling a second leg higher from here.
The price pattern in Apple here is an ascending triangle setup, a bullish continuation pattern that signals more upside ahead. The pattern is formed by a horizontal resistance level above shares -- at $155 in Apple's case -- and up-trending support to the downside. Basically, as Apple has bounced in between those two technically important price levels, shares have been getting squeezed closer and closer to a meaningful breakout through $155. When that happens, we've got a buy signal.
Shares have flirted with prices just above $155 in recent weeks -- like their all-time high at $156.65 -- that's why it's key to wait for a meaningful push through that line in the sand before you jump into this trade.
Editor's Pick: Originally published June 5.
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