Apple Stock Recurring Price Pattern that fueled the rise since 2012 is at risk of crumbling

In an upward-trending stock, once the price breaks and establishes a new high, it’s important that this new high remains unbroken.

However, there is a risk that the stock price may retrace and fall back below the previously broken high from the previous year. If this occurs, it could signal a potential false breakout or a shift in market sentiment. I call this false breakout ‘wash and rinse’ which is a strategy that I developed and used for my trading strategy.

1. I have a suspicion that the Moomoo chart is unadjusted for stock dividends.

2. The stock price reached approximately 182 in January 2022.

3. Throughout most of 2023 and January 2024, the stock price traded above 182.

4. As of now, the price is trading at 170.

This indicates a wash and rinse of the January 2022 high.

Such behavior is considered bearish, as it implies that the previously broken high has not remained unbroken.

5. From a technical perspective, if the price falls below 167, it would form a double-top pattern.

This pattern is also bearish and suggests potential further downside.