Over the past couple of months Apple rallied more than +50% without showing any weakness on the smaller timeframes. Some profit taking is totally expected and with market structure perfectly aligning, this could develop into a significant correction.
Here we go now, finally seeing the expected rejection at the channel top with a candle of -7% so far in January. It is even more likely that this will turn into a significant top formation with a potential retest of the previous all time highs. Overall however, the bullish uptrend remains intact.
Although the entire stock market is heading for new all time highs, Apple is struggling to keep up with the rally and has actually been dropping -12% over the past couple of days. This short setup was simply expected and within the next couple of weeks, we will see a retest of the support level.
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