AAPL is right on a huge area of value - which makes these candlesticks potentially have a stronger result. This area is around $442, which coincides with the 168.1% Fibonacci retrace (basically Apple stock hit a peak, then went down to the 61.8% line, which is important if you are looking for a bullish trend to continue, from there went all the way up past 100%, up to 168.1%.
So we had a very big bullish day on Thursday, followed by a smaller but also pretty significant bearish day. The result on the Daily chart is a Bearish Harami. In my eyes, we would see a reversal pattern here. But let's check out some other timeframes. Below is the Daily chart, with the Bearish Harami pattern.
Take a look at the 4 Hour chart, we see the following:
Not quite a bullish candlestick, but had a STRONG resistance to the Fib line we happened to be hitting. It ended the day up at a loss, but was well above where it hit prior in the day. To me, this says that it is going to consolidate further, so there aren't really any signs here, other than the strong bounce. We should see a little upwards momentum in the morning, but I don't know if it will be enough to push further.
Looking at the 2 Hour chart, We see what we might confuse as a bullish candle. This is a Doji, the price ended at exactly the same price it began, the market was at a standstill, and no decisions were made. It did go up, and it went down the same amount, before arriving back at the center. Now, used with other candlesticks, Doji's can turn into reversal patterns, and since it happened exactly at this important area, it is something that should be looked into further.
Finally, the weekly chart is still bullish, obviously the trend and channel are still intact. However, notice the long wick at the top of the last candlestick. This represents an area that was once covered by the green candlestick, but was rejected. The market is starting to consolidate and we will pick up more clues at this very level of what to do next.
So we had a very big bullish day on Thursday, followed by a smaller but also pretty significant bearish day. The result on the Daily chart is a Bearish Harami. In my eyes, we would see a reversal pattern here. But let's check out some other timeframes. Below is the Daily chart, with the Bearish Harami pattern.
Take a look at the 4 Hour chart, we see the following:
Not quite a bullish candlestick, but had a STRONG resistance to the Fib line we happened to be hitting. It ended the day up at a loss, but was well above where it hit prior in the day. To me, this says that it is going to consolidate further, so there aren't really any signs here, other than the strong bounce. We should see a little upwards momentum in the morning, but I don't know if it will be enough to push further.
Looking at the 2 Hour chart, We see what we might confuse as a bullish candle. This is a Doji, the price ended at exactly the same price it began, the market was at a standstill, and no decisions were made. It did go up, and it went down the same amount, before arriving back at the center. Now, used with other candlesticks, Doji's can turn into reversal patterns, and since it happened exactly at this important area, it is something that should be looked into further.
Finally, the weekly chart is still bullish, obviously the trend and channel are still intact. However, notice the long wick at the top of the last candlestick. This represents an area that was once covered by the green candlestick, but was rejected. The market is starting to consolidate and we will pick up more clues at this very level of what to do next.
Note
AAPL is looking like it might have that Bearish surpise in store for us already! A Bearish Engulfing Candle appearsNote
Interesting set up, not sure if it will be enough volume to reverse the trend though, this should just be a profit taking, or return to better price, before resuming upwards trend.
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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.