From an IBD research note posted Monday:
Apple stock likely has the most compelling chart action of the top Dow stocks. The tech giant is presenting a buying opportunity as it rebounds off the 10-week line for the first time since its August breakout. The first two pullbacks to the 10-week line after a breakout are considered chances to add shares to a position.
Apple stock popped 22% in Q3, more than any other Dow stock. The bulk of that came in August, when shares ran up nearly 20% following strong Apple earnings on July 31.
After another week of trading action, we could see a new chart pattern with a 229.77 buy point. But Apple stock has not yet met the minimum-length requirement for the formation of a proper base.
Apple stock rose 0.9% before the open in Monday’s stock market trading.
My take: Chart reading for dummies.