If I have a choice between giving good and ehh news first, I always pick the good news: the good news is that the stock just broke two long term resistance lines(RLs). The ehh news is that up ahead, AAPL could see increased volatility as it is now trading in a megaphone pattern. The RSI indicates much of the same; a breakout leading to a broadening megaphone pattern. However, I remain firmly bullish, but because if AAPL broke past the third RL it would have been too good to be true. Look for AAPL to bounce off last week’s support line, and it should retest the third long term RL. To accurately predict when another breakout will happen, look for contracted volume/ volume cluster (which I have circled for Last week’s breakout), and watch the RSI as well. However, in the case we see another steep drop off in price and RSI, I would keep a neutral outlook. Feel free to comment with stocks for me to do chart analysis on!
