I'm not talking about the las hour in which AAPL broke out of a symmetrical triangle that was there the entire day, I'm not talking about strength in to the close, I'm not even talking about the daily "Hammer" bullish reversal candlestick AAPL put in, I'm talking about the confirmation of Friday's already powerful bullish reversal.
Last Tuesday we put in a hammer on huge volume and since then, that support has held. If you got lost in the lines of intraday trade you might feel like AAPL was more bearish that it really was, the bottom line is for just having broken a H&S top's neckline, the follow through on the downside was not there, it couldn't add anything to the lows from Tuesday last week, so 1 day of follow through of 6?
Today's close is not only a bullish reversal hammer candlestick, but also what would be considered confirmation of Thursday/Friday's Harami Star reversal candlestick as today we not only tested some lows and saw them rejected, but closed higher-confirmation of the Harami.
AAPL since that first bearish descending triangle that was, according to Technical Analysis, supposed to start the next leg lower in AAPL, turned out to be a head fake and one that saw a positive divergence as that is one of the reasons for them, then a second head fake that was to hit orders and stops as it was just below the lows of the first yellow box lows. All the while, the leading positive divergence kept building.
This isn't a perfect rounding bottom, but it clearly illustrates (or at least within the next day or so I believe it will demonstrate) the concept of, "Reversals aren't an event, they are a process" and there's a lot of gamesmanship, false moves, head fakes, etc during that process.
Today's 2 min chart is beautiful as AAPL trades laterally in a triangle and 3C keeps moving higher in leading positive position until the 3 pm pop which is nothing compared to what AAPL should do when it crosses the H&S neckline.
Al in all, a good day for AAPL when you look at all of the information that is available beyond price and volume.
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