Stock of the day: Apple
08 November 2023
Apple's chart is presenting an exciting story, capturing the attention of traders with its dynamic shifts. After a period of flourishing growth starting from the year's dawn until mid-July, Apple’s stock found itself navigating through a corrective phase, delineated by a classic wedge pattern with converging black trendlines.
During this corrective wedge, a pivotal moment occurred – the stock's interaction with the significant 38.2% Fibonacci retracement level. This was not merely a tap-and-go; rather, Apple's price reflected resilience, subsequently initiating a series of bullish trading sessions. The crescendo of this bullish momentum was Monday's performance, where the stock broke free from the upper boundary of the wedge, not just piercing through it but closing above, setting a tone of conviction.
The subsequent trading day bolstered this bullish breakout with a confirmatory sign – a day marked by a higher high and a higher low, culminating in a robust bullish candle. This technical confirmation has laid the groundwork for a compelling buy signal.
However, it’s essential to consider the alternative scenario. If Apple's stock were to retreat back within the wedge, it would suggest a false breakout, a scenario that traditionally beckons a sell signal. Nonetheless, given the strength of the current indicators, such an occurrence seems to be on the less probable end of the spectrum. Traders will be keeping a keen eye on the stock, as remaining perched above the wedge could pave the way for continued upward trajectories.