It predicted a pullback to be imminent, despite the bullish start to the week we’re seeing right now.
I’d suggested if you were long on the stock with any short-term instrument like calls, you might want to take the profits. I continue to encourage caution here.
Stats show us that bearish cycles tend to be longer than bullish. Add to that, it’s typically risky to place calls when the MACD is bearing.
This rounded bottom pattern can take a while to play out. I believe we’re in phase 2, the sideways trend, for AAPL.
Looking at seasonality, summer is often a good time for tech stocks. In fact, historically, July and August are typically standout months for this stock. That looks to be when we’ll be hitting phase 3 of the rounded bottom when the share price should recover.
I’ll update you again next Monday.
Have a good week!