$AAPL Apple Stock Chart – Bullish or Bearish Pattern?

Latest quote: (: )

What do you see here:

head-and-shoulders (bearish)…

… or a falling wedge (bullish)?

I’m leaning towards the Head-and-Shoulders, because an ideal falling wedge would form after a downtrend. Falling wedge is a reversal pattern, and it’s the final drop before the bottom, with ever lower volatility producing smaller spikes, so this doesn’t qualify.

Anyway, I would never-ever bet on AAPL one way, and I think the best way to play this is a straddle. It’s a volatile stock, a straddle should produce good results, most of the time.

2 Comments

  1. TJ Parker

    I think you’re over-modelling to fit a falling wedge to the entire chart from 720 to 500: I see a wedge forming in the 500-580 range following the downtrend starting at 720. What follows could, of course, turn into a proper right shoulder for a larger head-and-shoulders pattern.

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