WYCKOFF LONG AAPL
Medium - long term outlook : Long
Short term outlook : Long
Reason for Long :
1. Pullback to bottom of bullish trend channel (white)
2. Regular divergence of OBV (volume) and price; AKA secondary test of selling climax (Wyckoff)
3. Regular divergence followed by hidden divergence on heavier volume with support at prior low ("Spring" - Wyckoff)
4. First break of bottom of bullish trend channel (white), further indication that this could be a "Spring" (a shakeout of previous longs, AKA running stops so the "smart money" can accumulate more stock at lower prices prior to the mark up phase)
5. Reverse head and shoulders pattern (right shoulder)
6. Symmetrical triangle pattern between the bottom of the bullish trend channel (white) and top of bearish trend channel (red); could be a false breakdown of this triangle pattern, leading to a bullish breakout.
Entry - pullback (Test of Supply - Wyckoff) without closing below the support level (blue line)
Initial Stop - swing low
First Target - prior swing high at around $112
Runner - major swing high/upper bullish trend channel line around $120
Short term outlook : Long
Reason for Long :
1. Pullback to bottom of bullish trend channel (white)
2. Regular divergence of OBV (volume) and price; AKA secondary test of selling climax (Wyckoff)
3. Regular divergence followed by hidden divergence on heavier volume with support at prior low ("Spring" - Wyckoff)
4. First break of bottom of bullish trend channel (white), further indication that this could be a "Spring" (a shakeout of previous longs, AKA running stops so the "smart money" can accumulate more stock at lower prices prior to the mark up phase)
5. Reverse head and shoulders pattern (right shoulder)
6. Symmetrical triangle pattern between the bottom of the bullish trend channel (white) and top of bearish trend channel (red); could be a false breakdown of this triangle pattern, leading to a bullish breakout.
Entry - pullback (Test of Supply - Wyckoff) without closing below the support level (blue line)
Initial Stop - swing low
First Target - prior swing high at around $112
Runner - major swing high/upper bullish trend channel line around $120
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