AAPL Stock: Can today’s hammer candle save this market?

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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