this 30 minute chart of AAPL shows what appears to be a bullish falling wedge pattern, complete with positive divergences in place on the MACD. i have included several horizontal levels plus a downtrend line where prices could likely find resistance if AAPL were to make a convincing breakout above that pattern.
keep in mind that AAPL is the lead sled dog in the market. if this pattern were to play out then the broad markets, particularly the $NDX and $COMPQ would likely follow. how one chooses to act on this pattern should depend on their trading plan, as discussed in post below. although i often micro-manage my positions from day to day (e.g.- lightening up or hedging as the market or key stocks fall to support and adding back short exposure on bounces into resistance), i don’t plan to take proactive or reactive measures in anticipation of, or on an actual breakout of this pattern… at least not at this time.
it has been my experience that, more often than not, bullish technical patterns during a downtrend (ditto for bearish patterns in an uptrend) tend to fail and reverse well shy of the technical projection for the pattern that has triggered. therefore, in keeping in line with my current longer-term swing short trading plan, i will ride out any (hopefully temporary) bounce in the markets that a breakout of this pattern might cause. if it becomes apparent that i am wrong and the bounce might be more than short-lived, then i will adjust accordingly (hedge or reduce short exposure). however, if correct, then we will probably see any bounce in AAPL & the markets fail and reverse very suddenly when most least expect it (such as a strong opening gap down). either way, just wanted to point out this potential bullish pattern and my current thoughts on how to play it (or not play it).