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. 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.

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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.