By Chris Tharp for Benzinga
The company: Apple, Inc.
Ticker Symbol: (NASDAQ: AAPL)
Sector: Consumer Goods
Industry: Electronic Equipment
Apple Inc. and its wholly-owned subsidiaries design, manufacture, and market mobile communication and media devices, personal computers, and portable digital music players worldwide. It also sells software, services, peripherals, networking solutions, and third-party digital content and applications related to its products.
Please take a look at the 1-year chart of AAPL (Apple, Inc.) below with my added notations:
Notice the rising wedge I have outlined on the chart of Apple. A rising wedge price pattern is essentially a type of triangle formation in which the stock (Apple) has formed an up trending resistance line and an up-trending support level (blue). These two trend lines converging on one another combine to form a rising wedge, which is usually a terminal pattern (bearish).
Confirmation of this pattern would occur if the stock broke the up-trending support. The declining momentum that I have highlighted in the lower panel (red) seems to support the idea that AAPL's run may be coming to an end.
Apple isn't set to release earnings again until January 23, 2014.
No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
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The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.
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