Apple, Inc (NASDAQ:AAPL) exhibited a 1.6% increase on Friday, following a predominantly upward trajectory within a rising channel pattern. The Cupertino, California-based company’s current pattern indicates a bullish outlook, at least for the short-term.
Additionally, Apple is currently trading within an inside bar pattern, signaling a period of consolidation that typically precedes a continuation of the prevailing trend.
The inside bar pattern carries greater significance on larger time frames, such as the four-hour chart or larger. This pattern involves a minimum of two candlesticks, comprising a mother bar (the first candlestick) followed by one or more subsequent candles, each fully contained within the range of the mother bar and referred to as an “inside bar.”
A double or triple inside bar pattern holds more potential than a single inside bar. Traders should look for high volume after the break of an inside bar pattern to confirm its validity.
Following the Federal Reserve’s decision to raise interest rates by 25 bps, volatility in the stock market has increased. Traders anticipating sustained market volatility may consider using MIAX’s SPIKES Volatility products, which track expected volatility in the SPDR S&P 500 over the next 30 days and are traded on the SPIKES Volatility Index (NYSE:SPIKE).
Apple’s chart reveals a bullish inclination for continuation, as the stock has been consistently trending higher. The most recent higher high occurred on July 19 at an all-time high of $198.23, while the latest higher low was recorded at $192.55 on Thursday.
In the event that Apple breaks upward from the inside bar pattern, it may encounter resistance at the upper ascending trendline of the channel. Conversely, if the stock breaks downward from Thursday’s mother bar, the high-of-day on Thursday will function as a lower high, negating the prevailing downtrend.
Should Apple eventually break upward from the channel, the stock could embark on a sustained uptrend with only psychological resistance levels lying above. Conversely, if the stock breaks downward from the channel, a longer-term downtrend might emerge.
Apple currently faces resistance at its all-time high and at $200, with support levels at $194.48 and $189.61 below.