Thursday, May 13, 2010

Apple Inc. (AAPL) - Bearish Engulfment

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Today Apple Inc. (AAPL) on the daily time-frame made a bearish engulfment which is a reversal pattern.. You'll notice the last time we had such a pattern was 9 trading ago right before the big sell-off..  In order to confirm the formation, I would need  to see the low of the bearish engulfment day taken out. This means AAPL must trade below today's low (256.40) to confirm the pattern. You'll notice on march 25th, there was a bearish engulfment that was never confirmed which is why waiting for follow through the next day is important.

As you know AAPL is one of the strongest stocks out there but even strong stocks pull back as you can see from last week's price action. If you do happen to be long this stock, it might be wise to raise your trailing stop to lock in any gains that you may have just in case this stock does indeed begin to head south. Apple Inc (AAPL) closed the day at 358.36 down 3.73 from yesterday's close.

1 comment:

Anonymous said...

358?

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