AAPL, Double Bottom, Potential Retest of the Recent Highs
The company was making headlines recently due to its excessive buyback program. This is the backdrop of the relentless upside move.
However, at this point the upside channel is broken and the price entered a consolidation phase. On Friday, the price formed a double bottom with a notable positive divergence. This may play out in a short term. Watch for a breakout of the wedge and run to the recent highs. Next week is a holiday week and that could delay any significant development. The downside scenario would be a breakout of the support, which would suggests that the H&S pattern is in play. Nevertheless, the bullish case for this stock won't be negated immediately. Pullbacks would be considered as buying opportunities. For shorts, it is better to wait for a double top. Trading the well known patterns is an objective way to enter the market.
Stay nimble.
11/24/2019
However, at this point the upside channel is broken and the price entered a consolidation phase. On Friday, the price formed a double bottom with a notable positive divergence. This may play out in a short term. Watch for a breakout of the wedge and run to the recent highs. Next week is a holiday week and that could delay any significant development. The downside scenario would be a breakout of the support, which would suggests that the H&S pattern is in play. Nevertheless, the bullish case for this stock won't be negated immediately. Pullbacks would be considered as buying opportunities. For shorts, it is better to wait for a double top. Trading the well known patterns is an objective way to enter the market.
Stay nimble.
11/24/2019
הערה:
The breakout has played out. The price is approaching the ATH and would create a double top. The MSFT is testing its ATH. If both tech giants starts to retreat they would drag the Nasdaq down as well. But for now, there is no sell signal. Shorting the dull holiday market is even more risky.