Stock Chart AAPL

Posted by downtowntrader | 12/09/2008 11:49:00 PM | 0 comments »

Stock Chart Analysis AAPL

Apple Inc.(Public, NASDAQ:AAPL)

AAPL has been tracing out an interesting pattern recently. It corrected this year along with the markets, and while the correction has been pretty steep, it is no worse then what the majority of stocks suffered through in this environment. It started to consolidate in a triangle in October and ended up breaking out of it lower in November. After a measured move lower, it now looks to be setting up for a potential double bottom. It recently reclaimed the 20 and 50 day moving averages, and could be close to attempting a break of the neckline shown in red.

While AAPL could break out as soon as tomorrow, I think a few days of tight trading would help to digest the recent runup. AAPL is oversold on stochastics and volume has been light, so a word of caution is definitely worth mentioning. I am basically neutral at this point, but I think the move will be large once it clears either side of this pattern.

Good Trading,


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