1. Sharp Decline and Recovery (Late March to Early May)
There was a significant drop in price followed by a strong rebound, but that rebound stalled just under previous resistance levels (around late April), forming a short-term lower high.
2. Current Structure Looks Weak:
Price is now consolidating sideways with a slight downward drift after rejecting the $207–$210 area. This could be interpreted as a bearish flag/pennant breakdown after the failed rally.
3. Volume Spikes on Drops:
Noticeable volume increases on the selloffs — especially during the big dip — which hints at distribution rather than accumulation.
4. Short-Term Trend:
The current short-term trend is downward. The price is making lower highs and lower lows after the bounce, indicating possible continuation to the downside unless new buying pressure steps in.
AAPL Bearish Continuation Strategy (Short-Term Swing)
Bias: Bearish (based on lower highs, breakdown after failed rally, and weak consolidation)
ENTRY:
• Trigger: Enter put options or a short position if price breaks below the recent consolidation low (around $196–$197).
• Confirmation: Look for increased volume and a clean close below the $196 level on the 1h chart.
TARGETS:
1. First Target: $188 – minor support zone from early May.
2. Second Target: $180 – psychological and historical support area.
STOP LOSS:
• Placement: Tight stop just above the recent consolidation high — around $202.50–$203.
• Keeps risk controlled and invalidates breakdown setup.
OPTION STRATEGY (if using options):
• Put Option: 2–4 weeks out, ITM or slightly OTM strike ($200 or $195 puts).
• Spread Alternative: Bear Put Spread ($200/$190) to lower cost and define risk.
Why This Works:
• Price has rejected previous resistance near $207.
• Structure is showing a bear flag/pennant failure.
• Volume confirms sellers are active on the drops.
There was a significant drop in price followed by a strong rebound, but that rebound stalled just under previous resistance levels (around late April), forming a short-term lower high.
2. Current Structure Looks Weak:
Price is now consolidating sideways with a slight downward drift after rejecting the $207–$210 area. This could be interpreted as a bearish flag/pennant breakdown after the failed rally.
3. Volume Spikes on Drops:
Noticeable volume increases on the selloffs — especially during the big dip — which hints at distribution rather than accumulation.
4. Short-Term Trend:
The current short-term trend is downward. The price is making lower highs and lower lows after the bounce, indicating possible continuation to the downside unless new buying pressure steps in.
AAPL Bearish Continuation Strategy (Short-Term Swing)
Bias: Bearish (based on lower highs, breakdown after failed rally, and weak consolidation)
ENTRY:
• Trigger: Enter put options or a short position if price breaks below the recent consolidation low (around $196–$197).
• Confirmation: Look for increased volume and a clean close below the $196 level on the 1h chart.
TARGETS:
1. First Target: $188 – minor support zone from early May.
2. Second Target: $180 – psychological and historical support area.
STOP LOSS:
• Placement: Tight stop just above the recent consolidation high — around $202.50–$203.
• Keeps risk controlled and invalidates breakdown setup.
OPTION STRATEGY (if using options):
• Put Option: 2–4 weeks out, ITM or slightly OTM strike ($200 or $195 puts).
• Spread Alternative: Bear Put Spread ($200/$190) to lower cost and define risk.
Why This Works:
• Price has rejected previous resistance near $207.
• Structure is showing a bear flag/pennant failure.
• Volume confirms sellers are active on the drops.
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.
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.