Is Apple Experiencing an Eiffel Tower Effect?
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The two Apple charts below look a good deal different from one another, yet they appear to be sending a similar message.
The left chart is a linear scale chart of Apple over the past 10-years, suggesting that an "Eiffel Tower" pattern is emerging. What is the message from this pattern? If you see the left side of an Eiffel tower pattern, you often end up seeing the right side too.
The right chart is a log-scale chart of Apple over the past three decades. We can see a 30-year resistance line looks to have stopped Apple's rally back in September. At the same time a multi-year bearish rising wedge looks to be breaking down at (2).
The patterns and messages from Apple don't appear to be bullish at this time and could well impact the broad market, especially the tech sector. The path going forward that the largest company in the world takes could well impact portfolio construction and overall performance!
(c) Kimble Charting Solutions