The up-and-down movement of the market has everything to do with the typical September volatility, which at some point should nauseate investors enough that we see a proper correction in stock prices. Despite that likely pullback, our chart scans are still picking up a number of bullish breakouts that should provide traders with opportunities regardless of the market’s hi-jinx.
Today’s Big Three Stock Charts caught three “New School” technology stocks that have been among the under-performers this year. Apple Inc. (NASDAQ:AAPL), GoPro Inc (NASDAQ:GPRO) and Fitbit Inc (NYSE:FIT) are all showing technical trends that should help investors outperform the market as they break into new bullish trends.
Apple Inc. (AAPL)
Those that know our writing know that AAPL stock is not usually a favorite. The stock is one of the most over-loved, overcrowded stocks in the market, but the technicals are now growing more attractive.
Last week’s release of the newest iPhone has caused a surge in the price as preorders have impressed investors. The results, a 12% rally in Apple shares in one week and, more importantly, a shift in AAPL’s price trend that suggests we may see shares go even higher.
From the weekly chart perspective, this week’s move breaks a six-month trend of lower highs and lower lows. Apple’s shift into a new trend direction will get some longer-term investors that have been moving away from AAPL interested as buyers again.
The massive volume move shot Apple shares through their top Bollinger Band by a wide enough margin that AAPL stock is likely to form a fast-moving continuation of the rally, despite the shares breaking into an overbought region. Traders had been keying-in on the $110 level as chart resistance, a level that gave way easily. Now, we’re seeing the market play a little catch-up.
This morning’s wire is also buzzing with price upgrades, the first for Apple in a long time. These price upgrades will help fuel that fast-moving rally that is likely to see AAPL shares start a longer-term trend back towards the $130 price point over the intermediate-term outlook.
GoPro Inc (GPRO)
Another stock that we’ve beaten-up on for a long time is GoPro. Our quibble with the company is that their products haven’t been innovative enough to drive higher prices. The GPRO charts disagree with the fundamentals though and as they say, you can’t fight the tape.
After more than a year of selling that has cut more than 80% of GoPro’s value down, GPRO shares are breaking into a new technical trend. Since February, the stock has been trading in a range between $15 and $8, but the recent rally poked GoPro shares up to $16, which started to build more momentum.
More importantly, GPRO stock has some bullish trendline support from its rising 50- and 200-day moving averages, which are just below current prices.
For now, traders should expect to see GoPro shares make a shot at $16 again — a 14% move. We’ll likely see some retracement from there, but with the trendline support picking-up, it is less likely we’ll see a $12 price for GPRO again, but instead a rally above $16.
Fitbit Inc (FIT)
Fitbit falls into the same category as GoPro, and the chart is almost a carbon copy. FIT shares are 70% lower than their highs from a year ago, but the short-term charts are showing upside potential that makes them an attractive trade.
Fitbit stock has been trying to get out of the $12.50 to $17.50 range earlier this year. The consolidation has formed support from the rising 20- and 50-day moving averages, which are currently residing at $15 and $14.50. There is one test ahead for FIT shares though.
The 200-day moving average is descending on Fitbit stock and is currently at $16.65. This is the first time that FIT stock will have an opportunity to break above this key trendline, which should cause some hesitation. That said, a break of the 200-day moving average would propel Fitbit shares higher to the $18 level.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
