I know that in last week's column I said to forget Apple (AAPL - Get Report), but a new setup in shares is bringing our attention back to the world's biggest company this week. Apple has been absolutely on fire in 2012, rallying more than 44% so far this year after producing similarly massive returns in 2011. Now the question on everyone's mind is whether this momentum stock can keep it going.
A different sort of triangle could give us the answer.
Apple is forming a symmetrical triangle right now, a pattern that's formed by a combination uptrending support and downtrending resistance converging. While the symmetrical triangle isn't as staunchly bullish as an ascending triangle, it's more often than not a continuation pattern. With Apple up so much this year, continuation would be a very bullish sign indeed. The direction that Apple breaks outside of the triangle will ultimately signal the direction of this trade.>>6 Tech Stocks That Rate Better Than Apple It's worth noting that Apple's uptrend has accelerated three times since December (a fourth acceleration between February and April broke). The fact that we've still got three uptrend lines intact as support of AAPL bodes well for shareholders from a risk management standpoint. Shorter-term traders should look to get out on a break below the triangle.