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Apple’s Evening Star Explained

Yesterday I wrote a blog post about Apple’s daily chart attempting to put in a higher low. The key there remains observing the MACD to see if the backtest to the signal line now holds, or instead sees another bearish cross lower. Thus far today, we are looking at a precise backtest and bulls cannot afford to see much more weakness from here, or the whole higher low thesis is called into question.

On a weekly timeframe, Apple bulls have even more issues. I have written about the potential weekly head and shoulders top possibility forming before, but I am fully aware that calling a generational top to Apple has been fool’s gold for years now. Thus, instead of getting worked up about only a theoretical head and shoulders weekly top at this point, I want to analyze a confirmed bearish pattern if nothing else than for educational purposes.

The Evening Star is a bearish reversal candlestick pattern, and it needs confirmation as any individual candle does. The website onlinetradingconcepts.com has done a terrific job of explaining this pattern, visually too.

Here is their diagram for the pattern:

And now here is the Apple weekly chart:

Clearly, the bearish evening star weekly pattern has been confirmed lower. It has been a while since a long-term bearish pattern has decisively confirmed to the downside on Apple. This is yet another reason why Apple bulls need a higher low thesis to prove true.

NOTE: In the Bearish “Abandoned Baby” pattern there is no overlap between the doji and the candles of the other two days. Hence, the doji, or baby, is truly “abandoned,” unlike the Evening Star which can overlap.

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