Chart of the Day - Wednesday, November 27, 2024

🏆 Today's Chart of the Day was shared by Larry Thompson (@HostileCharts).
 

• While the Technology sector has lagged recently, its largest component, Apple Inc. ($AAPL), has set the stage for a potential breakout. 
   
• With $NVDA pulling back recently, $AAPL is once again the largest stock in the S&P 500 and Nasdaq 100. It peaked at $235 in July before correcting as much as -11.8% on a closing basis and -17.4% on an intraday basis. 
   
• It has built a four-month Ascending Triangle pattern, and clearing $235 would open the door for a new leg higher in the coming weeks. Despite trending lower relative to the S&P 500, the ratio ($AAPL/$SPY) is testing its 50-DMA after reclaiming its September lows. 
   

The Takeaway: The largest stock in the world, Apple Inc. ($AAPL), hasn't participated since July. However, after a four-month consolidation phase, the stock has set the stage for a potential breakout in the final weeks of the year.