We saw a tremendous move on Friday with Apple Inc. (AAPL) after gaping down on Thursday in a piercing pattern.
The interesting thing here is Friday’s move took out the last seven candles… overall a pretty good sign.
As long as AAPl can hold above $150, the bias is sideways to up until we get up to $155 to $157.
If we drop below $150, it would be a sign that the stock is still in a compression phase.
And though the daily MACD indicator is still bearish at the moment, the weekly MACD is bullish. If the stock continues its sideways to up action, the daily MACD will flip around to the bulls.
AAPL has been in a downward trend, but we’ve seen a lot of chop. The stock needs to get above $157 for us to see a sustainable breakout to the upside.
I’m excited to see what develops this week. Until next Monday…
Happy trading,
Scott
