AAPL Update

AAPL is similar to PCLN in many concepts, the price pattern is and trend are different, but for the short term situation, it shares many of the same characteristics.

 First are the false breakout of the consolidation triangles, which fall into the continuation pattern category so for most technicians, when these triangles broke to the upside, it was a buy signal. Now price is moving below and putting them at a loss, but once again this is the smaller picture.

The real damage would be done if AAPL breaks down back into this channel, the same margin calls would roll in, the same loss selling by longs would occur and most likely send AAPL to the bottom channel quickly. This trade could also be entered short right here with a stop above the recent highs, or on the confirmation of the bigger false break out when prices fall into the channel or as with PCLN, a blended strategy of the two.