Market Update: AAPL Symmetrical Triangle remains in play
Hi traders, today we look at Apple on the daily chart as price remains held in a symmetrical triangle consolidation pattern.
AAPL is one of the many US Shares you can trade with Eightcap. Its price has been consolidating for a decent period now, and so far, the pattern continues to hold as a triangle and not a wedge.
We have marked the current trend, so as this triangle pattern occurs in an existing uptrend, the idea is that it could continue higher after the price breaks out. This is no guarantee, traders. We need to see price breakout and maintain direction before we take action. This is the case with all consolidation patterns as before the market takes direction. It’s a pure guess, plain and simple. Remember, just because the market breaks out in the trend direction, it’s not sure that we will see an extended run, but that’s trading!
The orange box in the top-right corner of the chart below shows a cross point with the pattern and the uptrend. If AAPL’s price breaks lower from the pattern and breaks through the trend, this could be a warning that sellers could outweigh buyers, and the market needs more time to produce bullish evidence before long positions are thought about.
With any breakout, traders can wait for the first retracement after the break and look to join the move after the first higher low (Buying) or lower high (Selling) to gain a little more confidence that the move is actually confirmed.
Attention will be on the next few Nasdaq sessions to see if and in what direction the AAPL takes.