Say it Ain’t So! A Double Top on Apple?

It’s not hard to be bullish on Apple given the potential for an iPhone upgrade cycle. But now the unthinkable may be occurring on the tech giant’s chart: a bearish double-top reversal pattern.

Notice how AAPL tried to push above its previous high in the early minutes of December 29, only to get rejected. That session and the next three were all the same, with early pops followed by closes near the lows.

The fact this occurred in the quiet week between Christmas and New Year’s is also noteworthy. It suggests big money never endorsed a breakout.

Price action since then has also been inert, with very little bounce. MACD has turned negative and the price is struggling to hold the 21-day exponential moving average (EMA).

Overall, AAPL’s chart isn’t especially bearish. But another trend is potentially bearish: broad selling in other large-cap technology stocks. Money seems to be shifting away from the big names in favor of cyclical value plays (like energy), or newer and smaller disruptors like Airbnb.

AAPL could become a “source of funds” under those circumstances. Bulls may want to tread with caution, especially now that a double-top has appeared.

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