Stock of the day: Apple

Today, there’s an interesting bullish setup on Apple, which is in line with the positive sentiment on Wall Street in general. Before we get into details, it’s worth remembering that Apple publishes its earning on Thursday, after the market closes.

Apple’s bullish setup comes from the Inverse Head and Shoulders pattern (yellow), which was built throughout October. At the end of the month, AAPL managed to break the mid-term downtrend line (red) and a few days later, the neckline (orange) of the iH&S pattern. Both of those events, in theory, seal the bullish sentiment here.

The sentiment on Apple remains positive as long as its price stays above the red down trendline. A comeback below is of course possible but not really probable at the moment.