HedgeFundLive.com — A famous line that technicians will say over and over again is to cover up the name on a chart and analyse the chart for what it is. The exercise says don’t get swayed by a company name if you are going to use technical analysis to make your judgement. Try doing it with a few of your names and see if it changes your opinion.
When I cover up the symbol AAPL, I see a chart that is truly struggling, three consecutive lower highs, the price and the 20 day SMA are both trading below the 50 day SMA. I believe that if the stock closes below $329, then $306 is easily in its sights.
I believe in candle patterns and their ability to help predict price reversals and today AAPL made a hammer candle which is a very reliable pattern but like most candle patterns, requires confirmation. That confirmation needs to come in the form of a higher close than today before it makes a lower close, let’s use $329 as that number.
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