AAPL Apple Stock Making Cup And Handle Pattern

AAPL Apple stock recent price action is suggesting that the stock may not go anywhere anytime soon. There has been a lot of buzz online about the new iPhone 6 launch. Market analyst think that this new iPhone 6 will be a hit with the consumers and can take AAPL to new highs. However there has also been reports that the new sapphire screen on iPhone 6 has developed some problems before the launch. Is this a negative signal to the market?

A top Wall Street technical analyst Carter Worth thinks that AAPL stock can take a breather for a while before it starting making new highs. Worth pointed out that since hitting a high in September 2012, the tech giant’s stock has declined 50 percent, then broke its downtrend, and subsequently regained its losses to form what’s called a cup-and-handle pattern.

“Ultimately this kind of set up projects to the past top, where we are now. And, in principle, a stock that gets back to a well-defined past top before being able to exceed that top, responds to it.”

That’s because, according to Worth, when this pattern forms, investors who bought at the previous top, and subsequently lost money, may look to exit the stock upon recouping their losses. That selling action could lead to some sideways trading.

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