Investing.com investing.com 30 Dec, 2020 19:00 am

Chart Of The Day: Soaring Apple Shares Look Set To Stall

Chart Of The Day: Soaring Apple Shares Look Set To Stall
Stocks Analysis by Investing.com (Pinchas Cohen/Investing.com) covering: Apple Inc, Lens Technology Co Ltd. Read Investing.com (Pinchas Cohen/Investing.com)'s latest article on Investing.com

That produced a Bearish Engulfing pattern—a visual representation illustrating a bearish counterattack that rendered the attempted bullish advance a failure.The fact that Monday also saw a rising gap sets up this bearish engulfing pattern to become an Island Reversal.p These bearish engulfing patterns have the make up for an Island Reversal following an Exhaustion gap which coincides with the previous all-time high, posted on Sept.Given this was the fourth gap in a row during December, further increases the odds an Exhaustion gap, the final flicker of a flame before its extinguished, as dumb money rushes in at the top of the market, duped by all the good news, that the smart money had already priced in.

Apple has already been under scrutiny along with other big tech companies this year from US Congressional lawmakers.However, the fact the stock slumped more than the broader market yesterday, just one day after it led big tech shares higher, is a red flag in our book.

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