$AAPL Apple Stock Chart – Bullish or Bearish Pattern?
Latest quote: [[aapl]]
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.
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.
Good point, I missed that. Yes, shorter term the wedge fits.
Here’s another one on H&S: link
That said, H&S isn’t a very reliable pattern, only something like 1 in 3 works out.