Today AAPL formed a Hammer candlestick, testing the upward trend line. After the 3 weeks of indecision and downtrend, this is highly likely to be a key reversal with the 3 targets outlined on the graph. Each target is in a fading blue/green because it becomes less likely from today's perspective.
I personally love trading those. On the chart I have shown a small 7 months backtrack test, showing that a Hammer candlestick pattern formed at a bottom [light blue ellipses] are usually marking a bottoming market and a uptrend. The Hammer patterns that do not form on a bottom [light red ellipses] are to be ignored.
The blue light that goes from top to bottom is marking a key date which is 23 October, where apple will be holding an investors speech and reporting the releases of new products.
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Stelian
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@Chart trader
Thanks for your question firstly.
At the moment it hard to say especially now at a time when Microsoft releases win8 along with the surface. Win 8 will be a big impact, completely changed and at the time when Apple has the most attention on [therefore the most criticism as well]. It will be integrated in Nokia HTC and other Apple competitors. It will be a very busy few weeks, I personally will keep publishing AAPL charts when I see a continuation or reversal so if you are happy, keep following.
jeffreysmith
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you are correct...you might also note a double hammer hitting the 0.6 Fib retracement to 621-623 in the weekly chart, as well as a southern cross on the daily at 10-12, and an engulfing bull candle on the 4 hr chart 3-4 days ago
charttrader
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Do you think it can go further up to 800?
charttrader
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Agreed.
Razvan
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Agreed.
george
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Agreed.
Stelian
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@alexp I do agree, the more overview of other signals supporting this idea [e.g. the double bottom here] the more correct you will be trading the candlestick patters. In this case I just found it as an enough argument to point out that it was on a two month low at the trend line.
alexp
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Agreed.
HPotter
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Agreed.
alexp
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patterns always have to be considered in a context - for example the March and June and September candlesticks didn't work well enough as they were mostly in trading ranges - so having a Hammer candlestick doesn't mean the reversal at all. However, the facts that the trend line has been touched, the double bottom has been formed and it was the second attempt to reverse since the previous one on Oct 9 has failed - those all work well enough together for a push up at least to MA area.
Thanks for your question firstly.
At the moment it hard to say especially now at a time when Microsoft releases win8 along with the surface. Win 8 will be a big impact, completely changed and at the time when Apple has the most attention on [therefore the most criticism as well]. It will be integrated in Nokia HTC and other Apple competitors. It will be a very busy few weeks, I personally will keep publishing AAPL charts when I see a continuation or reversal so if you are happy, keep following.