|The correction that began at the highest level of $148 in Apple, Inc., moved below the 50-day moving average (MA) support and gradually closed at the low of $111.62. Here, a trend reversal was indicated when a doji star was formed. The first red candle in Figure 1 indicates the existing trend that is in a downtrend. The second day was gap down, closing near the open. This formed a red doji, which completes the doji star pattern in a downtrend perfectly. This pattern indicates that the trend is about to change. The effect is clearly seen on the chart. The stock rallied from $111 to $145.|
|Apart from the doji star, one gap up doji is also marked in the circle. Instead of a doji, if the third candle could have been bullish within the body of a bearish first candle, then a morning star would have formed. The morning star is a bullish reversal pattern and indicates an upside move. In any case, the gap up doji was followed by an upside move, giving more importance to the doji star. And a previous high was within reach.|
|FIGURE 1: APPLE, INC., DAILY. With the doji star, the bulls rallied up to the 145 level. The group of three doji indicates an uncertain move in the current market situation.|
|Graphic provided by: StockCharts.com.|
|In the last few days the volatility in the financial market was back again, scaring the bulls. The NASDAQ Composite was under turbulence again, naturally affecting its technology stocks. |
Apple, Inc., was not exceptional in the technology group. As a result, the stock's upward journey halted at $145. Now, Apple, Inc., is trying to sustain close to its 50-day MA support. A group of doji candles were being formed in the last three days. The clouds of uncertainty have gathered again around the stock.
|The indicators are positively holding a bullish position. Only the domestic trouble in the overall market can change the picture. The price is reacting in an uncertain way even on positive bullish indicators.|
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