Article by Investazor.com
Chart: AAPL, H1
The stock of the week is Apple Inc. with a pretty interesting price pattern. After the 15% drop started at the beginning of June the stock managed to gain back 61.8.
On the way up the price started drawing a Rising Wedge, which topped at 430.50$ per share. The price pattern was formed during the last 3 weeks. In all this time it can be observed that the volume started to drop. Next to this signals we can also add the 14 periods RSI which has made a negative divergence and it dropped under its trend line.
Now the price got very close to the apex of the pattern. The width of the Wedge is 21.50 dollars. If the pattern will be confirmed by a close, on a one hour chart, under the lower line, we can expect for the stock to lose at least 5%. Why at least? Because if we look at the trend, it is descending, so a new drop might become another impulse for the current main trend.
Even though our favorite scenario is on the down side, we have a backup. If the price will break and close above 431$ per share we will revise our analysis.
The post Apple Inc. Is Signaling a 5% Drop on Rising Wedge appeared first on investazor.com.
