In today’s analysis, we come back to Apple, which we analyzed on the 14th of June. Back on that day, the price was inside of the symmetric triangle and there was no proper trading signal. We were waiting for the breakout and we’re coming back to this instrument now, because the breakout happened.
But first, let me remind you of our previous piece about Apple, where we wrote this:
“From a price action point of view, there is no signal yet. The way technical traders usually see this is that one can think about going short once the price breaks the lower black line and to go long, once the price breaks the upper black line. It’s that simple.
Trying to predict which direction the price will break can be hard and actually not worth the effort. In this case, breakouts are usually firm and trustworthy, so it is much easier to wait for one instead of trying to guess the direction in advance.”
A few days and a lot of patience later, we do have a signal and it’s a signal to the upside. Yesterday’s session created a nice bullish candle, which broke the upper line of the triangle. It does two things at once; activates the triangle and denies the head and shoulders pattern.
With the price being above the upper black line, we do have a proper buy signal. The price coming back inside of the triangle will cancel the positive sentiment but for now, this is less likely to happen. Sentiment on Apple is definitely positive.