AAPL Daily Chart: Head and Shoulders Pattern Confirmed
Apple Inc. (AAPL) has formed a classic head and shoulders pattern on the daily timeframe, signaling a potential reversal from its recent uptrend.
🔍 Key Observations:
Left Shoulder: A peak followed by a pullback.
Head: A higher peak compared to the left shoulder.
Right Shoulder: A peak similar in height to the left shoulder.
Neckline: The support level connecting the troughs between the shoulders and head.
The pattern was confirmed when AAPL closed below the neckline, located around the $220 level. This breakdown suggests a bearish outlook, with a potential downside target of approximately $180, calculated by measuring the vertical distance from the head to the neckline and projecting it downward from the breakout point .
verifiedinvesting.com
📊 Trading Strategy:
Entry: Consider entering a short position upon a confirmed breakdown below the neckline.
Stop Loss: Place a stop loss above the right shoulder to manage risk.
Target: Set a profit target near the $180 level, adjusting based on market conditions.
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⚠️ Risk Management:
Monitor for any bullish reversal patterns or a close above the neckline, as these could invalidate the bearish setup.
Note: This analysis is for informational purposes only and does not constitute trading advice. Always conduct your own research and consult with a financial advisor before making investment decisions.
Apple Inc. (AAPL) has formed a classic head and shoulders pattern on the daily timeframe, signaling a potential reversal from its recent uptrend.
🔍 Key Observations:
Left Shoulder: A peak followed by a pullback.
Head: A higher peak compared to the left shoulder.
Right Shoulder: A peak similar in height to the left shoulder.
Neckline: The support level connecting the troughs between the shoulders and head.
The pattern was confirmed when AAPL closed below the neckline, located around the $220 level. This breakdown suggests a bearish outlook, with a potential downside target of approximately $180, calculated by measuring the vertical distance from the head to the neckline and projecting it downward from the breakout point .
verifiedinvesting.com
📊 Trading Strategy:
Entry: Consider entering a short position upon a confirmed breakdown below the neckline.
Stop Loss: Place a stop loss above the right shoulder to manage risk.
Target: Set a profit target near the $180 level, adjusting based on market conditions.
verifiedinvesting.com
+4
tradingview.com
+4
tradingview.com
+4
⚠️ Risk Management:
Monitor for any bullish reversal patterns or a close above the neckline, as these could invalidate the bearish setup.
Note: This analysis is for informational purposes only and does not constitute trading advice. Always conduct your own research and consult with a financial advisor before making investment decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.