Friday, May 21, 2010

Apple Inc. (AAPL) - Bullish Pattern Forming


Apple Inc. (AAPL) formed a bullish engulfment pattern today by opening below yesterday's close and closing above yesterday's open. You'll recall BEFORE the recent 30 dollar drop in AAPL, I pointed out the bearish engulfment pattern that formed on May 13th which worked out perfectly.

In order to CONFIRM the bullish engulfment pattern that is taking place right now, AAPL would have to trade above today's high which is 244.50.Today's volume was above average and this stock also appears to be holding up better than the overall market which helps add to the bullish bias I am now seeing for this stock. Apple Inc. closed today at 242.32 which is up 4.56 from yesterday's close.

3 comments:

Anonymous said...

This is a "One Day" candle observation. Clearly the overall market is bearish right now, and today was just a dead cat bounce. To play this call for a few days is fine, with a tight stop, but an entry point for a core holding? No way

Kevin said...

I totally agree.

TraderLars said...

its a nice call but, but without question countertrend, i think there are much better countertrend plays out there that could outperform this, and honestly looking at apple, it wouldn't surprise me if this doesn't much higher but rather puts in a sideway/slightly upwards flag or consolidation/inside days of some kind.

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