Shares of Apple Inc. (NASDAQ:AAPL) have been zippy this week after the Wall Street Journal said the company is in talks with Comcast (CMCSA) on a set-top box streaming service.
The news drove Apple’s stock higher in a weak tape for tech. It’s the latest rally in a long climb back from last month when shares briefly dropped below $500 in the wake of a poor earnings report. In the attached video Alphatrends.net founder Brian Shannon says Apple shares are at a critical juncture.
Conceding up front that the “reverse head and shoulders pattern” being formed sounds like technical analysis voodoo, Shannon says the important thing for investors to note is that Apple is on the cusp of reversing a short term downtrend and attacking resistance that’s been in place since the company peaked over $700 in September of 2012.
In technical terms Apple is forming a reverse head and shoulders pattern that will be confirmed if the stock can hold current levels near $540.
Watch the video below for more details: