Apple May Have a Bullish Continuation Pattern

Apple jumped after its last quarterly report and barely pulled back. Now the price action may have turned into a bullish continuation pattern.

Notice the higher lows on February 3 and 10. The tech giant remained trapped beneath roughly $154.50 throughout this period. The result is an ascending triangle that prices are now trying to break. Is it possible that the preceding upward move isn’t done?

Interestingly, the triangle’s lows also represented higher lows on the weekly chart. AAPL additionally completed an inside week following the big jump in early February. That kind of tight price action -- with a lack of profit taking -- may suggest it’s under accumulation again.

Another potential sign of buyers outnumbering sellers is in the relative strength histogram below. It compares the trailing one-month (21 bars) change of AAPL against the S&P 500. The current moment could resemble other times when AAPL outperformed the broader index, like November 2021 and July 2022. Both were followed by periods of further upside.

Finally consider the 10-day simple moving average (SMA) in yellow. It served as a good trend indicator the last time AAPL rallied and stalled. (See the yellow arrows.) Prices have bounced at it again several times this year, including today.

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