Apple IncShort
$AAPL - TRADING AGAINST RESISTANCE
Yes, AAPL has been picking up a lot of attention. After all it is trading at 52 week highs whereas the market sentiment remains pessimistic or sluggish at the very least.
For those being carried away by the good news surroundingAAPL, today I brought you the perspective of my beloved charts, through the lenses of my favorite time frame (M).
And they are telling us that the price is currently trading against a key resistance area where the bears who missed the sell off back in mid 2022, could be tempted not to miss it and again, and the traders who were holding long positions were hurt by the sell off could sell now that the market is trading at the same levels as it was back then.
Plus, the higher time frames, still suggest this market remains overextended ... momentum is still not bullish as evidenced by the RSI plot, which is yet to make a new higher high, and the MACD.
All in all, even if we're talking about the almighty AAPL, the charts are telling us that this market is ranging for the time being. There is no point in going long close to resistance in a ranging market. I won't just say that it's actually worth to start looking for short positions in this market because there's really no meat in such a trade, with support being located no so distantly.
Also worth mentioning for future references, the neat way how the 10 EMA trailed this market throughout the entire 2020-2021 bull run. With an exit order being given only at the open in May 2022, right after this market had topped.
This is why I like technical analysis. It quantifies and systematizes this chaotic industry and world. This in turn, enables you to create strategies were the discretion is tossed away and your decisions as a trader become black and white, hard and fast and almost oblivious to the overwhelming complexity of the world.
Cheers,
Tenacious Tribe - Quantified Trading Strategies & Studies
AAPL has been picking up a lot of attention. After all it is trading at 52 week highs whereas the market sentiment remains pessimistic or sluggish at the very least. For those being carried away by the good news surrounding
AAPL, today I brought you the perspective of my beloved charts, through the lenses of my favorite time frame (M). And they are telling us that the price is currently trading against a key resistance area where the bears who missed the sell off back in mid 2022, could be tempted not to miss it and again, and the traders who were holding long positions were hurt by the sell off could sell now that the market is trading at the same levels as it was back then.
Plus, the higher time frames, still suggest this market remains overextended ... momentum is still not bullish as evidenced by the RSI plot, which is yet to make a new higher high, and the MACD.
All in all, even if we're talking about the almighty AAPL, the charts are telling us that this market is ranging for the time being. There is no point in going long close to resistance in a ranging market. I won't just say that it's actually worth to start looking for short positions in this market because there's really no meat in such a trade, with support being located no so distantly.
Also worth mentioning for future references, the neat way how the 10 EMA trailed this market throughout the entire 2020-2021 bull run. With an exit order being given only at the open in May 2022, right after this market had topped.
This is why I like technical analysis. It quantifies and systematizes this chaotic industry and world. This in turn, enables you to create strategies were the discretion is tossed away and your decisions as a trader become black and white, hard and fast and almost oblivious to the overwhelming complexity of the world.
Cheers,
Tenacious Tribe - Quantified Trading Strategies & Studies
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