$AAPL: To Take Profit Now or to Hold on to Long Position?
Hi Fellow Short Term Traders, Tech Stock Investors and all Apple fans,
Here's an update to my previous idea, "Potentially Fund a New Phone With 250 Apple Shares & This Idea".
Essentially the price target of $118.90 has been met, so congratulations for those who have closed and booked their profits.
For those who are long and have yet to close, I know what most of you are thinking.
This update will help to answer the question: "Should I continue to hold the long position for perhaps more profit or close position and take profit now?"
I will illustrate 3 possible scenarios that price may move from this point:
(A) This will be the best case scenario where price simply breaks past the immediate resistance and trades higher.
The basis for this scenario is simply that "Triple Bottoms" are rare and will have slightly more "bullish power" to break past simple resistance lines.
A possible profit taking guide to Scenario A will be to take profit when RSI is close to or around 80.00 levels.
(B) This Scenario simply states that price may respect 120.00 resistance level a little while and retrace a bit.
After retracement, price will still break through 120.00 anyways as after all we are in a bullish trend for Apple.
Like Scenario A, profit taking for Scenario B will be to take profit when RSI is close to or around 80.00 levels.
(C) This is the worst case scenario whereby price gets sharply resisted against 120 and falls back down, possibly resulting in a loss.
(Decision is Still Yours)
I can only show you the possible scenarios and it is ultimately up to each trader to answer the question themselves.
I am sure there will be different answers coming up and if possible please share them in the comments.
Also, I cannot really quantify the probability of each scenario happening.
(My Personal Decision, for Sharing only)
Personally I am long 3 $115 AAPL Calls. Given that now price has 3 possible Scenarios that can happen, I will be closing 2 calls later today (2015 Jan 31) and keeping 1 Call for Scenario A or B.
This way I would have booked partial profit to insure against the loss of Scenario (C) and still have little something to gain if (A) or (B) occurs.
Like it, Share it, Follow it~
StockTwits: stocktwits.com/BreakOutArtist
Twitter: twitter.com/BrkOutArtist
TradeHero: BreakOutArtist
Here's an update to my previous idea, "Potentially Fund a New Phone With 250 Apple Shares & This Idea".
Essentially the price target of $118.90 has been met, so congratulations for those who have closed and booked their profits.
For those who are long and have yet to close, I know what most of you are thinking.
This update will help to answer the question: "Should I continue to hold the long position for perhaps more profit or close position and take profit now?"
I will illustrate 3 possible scenarios that price may move from this point:
(A) This will be the best case scenario where price simply breaks past the immediate resistance and trades higher.
The basis for this scenario is simply that "Triple Bottoms" are rare and will have slightly more "bullish power" to break past simple resistance lines.
A possible profit taking guide to Scenario A will be to take profit when RSI is close to or around 80.00 levels.
(B) This Scenario simply states that price may respect 120.00 resistance level a little while and retrace a bit.
After retracement, price will still break through 120.00 anyways as after all we are in a bullish trend for Apple.
Like Scenario A, profit taking for Scenario B will be to take profit when RSI is close to or around 80.00 levels.
(C) This is the worst case scenario whereby price gets sharply resisted against 120 and falls back down, possibly resulting in a loss.
(Decision is Still Yours)
I can only show you the possible scenarios and it is ultimately up to each trader to answer the question themselves.
I am sure there will be different answers coming up and if possible please share them in the comments.
Also, I cannot really quantify the probability of each scenario happening.
(My Personal Decision, for Sharing only)
Personally I am long 3 $115 AAPL Calls. Given that now price has 3 possible Scenarios that can happen, I will be closing 2 calls later today (2015 Jan 31) and keeping 1 Call for Scenario A or B.
This way I would have booked partial profit to insure against the loss of Scenario (C) and still have little something to gain if (A) or (B) occurs.
Like it, Share it, Follow it~
StockTwits: stocktwits.com/BreakOutArtist
Twitter: twitter.com/BrkOutArtist
TradeHero: BreakOutArtist
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.