One thing you need to be true with chart patterns is a large number of other traders need to be able to easily identify them. If not, then you have that much less of a chance of it working out. Take our stock today for example, it actually has a couple of patterns going on, depending on how you splice it.
From one standpoint, you have what could be argued as a large, drawn out bull flag. On the other, you have an inverse head and shoulders. However, the latter is the one we are going to focus on for today’s edition.
Apple (AAPL), our stock in focus, appears to have formed an inverse head and shoulders within the context of that large bullish flag we mention, both of which are bullish. A break above the 157.5 mark would confirm both of them.
Upon confirmation of these patterns, we would likely want to look for entry into a long, or bullish, trade. Join today to see if this is out next trade!
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Good Luck With Your Trading!
Christian Tharp, CMT
This post was originally published on Wealthpop