Apple's Bearish 'harami Cross' Warns Of Trend Reversal

By Tomi KilgoreMarketsMarketWatch Pulse

Apple Inc.'s stock , which fell 0.6% in premarket trade Thursday, is warning of a reversal of the recent short-term uptrend, according to a bearish candlestick chart pattern known as a "harami cross." On Wednesday, the stock's close ($117.34) was very close to the open ($117.35), and in the middle of the intraday range ($116.75-$117.98), creating a candlestick pattern called "doji," which in Japanese means "at the same time." When dojis appear at the extreme of a recent trading range, they are believed to be trend reversal signals. In Apple's current chart, the doji is the "cross" that appeared within the body of the previous session's long candle ($116.30-$117.70). That makes it a "harami," which in Japanese means to be pregnant, and to technicians suggests enough uncertainty to warn that the short-term trend has run out of steam.

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