The past week was an eventful one for Apple, Inc (NASDAQ:AAPL), markued by a promising 1.6% rise on Friday. Apple’s stocks are steering a robust course, in line with the rising channel pattern. This bullish trend has been apparent at least for the short-term.
Understanding the Inside Bar Pattern
During this time, Apple has been maneuvering within an inside bar pattern. This occurrence typically points to a consolidation phase, often leading to a continuation move following the prevailing trend.
For those unfamiliar with the terminology, an inside bar pattern carries more weight on larger time frames (a four-hour chart or beyond). It begins with a mother bar (the first candlestick in the pattern) and is followed by one or more subsequent candles falling entirely within the range of the mother bar – these are the “inside bars”. The power of the pattern increases with the presence of a double or even triple inside bar.
Traders should be on the lookout for high volume following the break of an inside bar pattern. This serves as a confirmation that the pattern was recognized and is a crucial component of successful trading.
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Dissecting Apple’s Chart: Bullish Tendencies and Potential Resistance Points
Apple’s chart analysis unveils an inside bar pattern that suggests a bullish continuation. This assertion stems from the stock’s upward trend. The pattern reached its recent zenith on July 19, hitting an all-time high of $198.23. The most recent dip or “higher low” was marked at $192.55 on Thursday.
If Apple’s stocks ascend from the inside bar pattern, they may encounter resistance at the upper ascending trendline of the channel. Conversely, if stocks descend from Thursday’s mother bar, it could establish Thursday’s high-of-day as a lower high, effectively interrupting the downtrend.
An upward break from the channel could set Apple’s stocks off on a run with only psychological resistance levels posing any form of resistance. A downward break, on the other hand, might spell the onset of a longer-term downtrend. Currently, Apple’s resistance lies at the all-time high and at $200, with support beneath at $194.48 and $189.61.
