AAPL on the Verge of a Breakout! Critical Trade Setups and Gamma
Technical Analysis (TA)
* Trend Overview: AAPL has been forming a rising wedge pattern on the 1-hour chart, suggesting a potential breakout. Current resistance lies near $240, with support established around $227.50 and $220.
* Indicators:
* MACD: Showing a bullish crossover, suggesting upward momentum.
* Stochastic RSI: Overbought levels, cautioning traders about potential retracement before continuation.
* Volume Analysis: Increasing volume near the $239-$240 level indicates heightened interest, signaling a potential attempt to breach resistance.
GEX (Gamma Exposure) Analysis
* Key Levels:
* Gamma Resistance: $250 - Highest positive NETGEX, suggesting strong resistance if price nears this level.
* Gamma Support: $227.50, acting as a safety net for pullbacks.
* Options Walls:
* CALL Walls: 57% at $240 and 58.2% at $260.
* PUT Walls: -17.5% at $225 and -32.44% at $220.
* Implied Volatility Metrics:
* IVR: 57.7, indicating elevated implied volatility.
* IVx Average: 40.1, slightly above the norm, highlighting potential big moves.
Trading Plan
1. Bullish Scenario:
* Entry: Above $240 with strong volume confirmation.
* Targets: $244 (short-term), $250 (medium-term).
* Stop-Loss: Below $236.
2. Bearish Scenario:
* Entry: Below $235 on heavy selling pressure.
* Targets: $227.50 (initial support), $220 (secondary support).
* Stop-Loss: Above $239.
Options Strategy
* Bullish:
* Buy 240 CALLs expiring in March 2025 to capitalize on potential upside toward $250.
* Risk management: Exit options if AAPL retraces below $235.
* Bearish:
* Buy 230 PUTs for downside coverage, targeting $220.
* Exit options if AAPL moves above $240.
Thoughts on Direction
AAPL appears to be consolidating for a significant move. The rising wedge pattern and bullish indicators hint at a possible breakout above $240. However, caution is advised as the Stochastic RSI indicates overbought conditions, and price may retest lower levels before continuing its upward journey.
Key Note
Price levels may change with the next premarket session. Traders should adapt to new developments and reassess setups accordingly. If you need updates or guidance, feel free to reach out.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always do your research and manage your risks before trading.
* Trend Overview: AAPL has been forming a rising wedge pattern on the 1-hour chart, suggesting a potential breakout. Current resistance lies near $240, with support established around $227.50 and $220.
* Indicators:
* MACD: Showing a bullish crossover, suggesting upward momentum.
* Stochastic RSI: Overbought levels, cautioning traders about potential retracement before continuation.
* Volume Analysis: Increasing volume near the $239-$240 level indicates heightened interest, signaling a potential attempt to breach resistance.
GEX (Gamma Exposure) Analysis
* Key Levels:
* Gamma Resistance: $250 - Highest positive NETGEX, suggesting strong resistance if price nears this level.
* Gamma Support: $227.50, acting as a safety net for pullbacks.
* Options Walls:
* CALL Walls: 57% at $240 and 58.2% at $260.
* PUT Walls: -17.5% at $225 and -32.44% at $220.
* Implied Volatility Metrics:
* IVR: 57.7, indicating elevated implied volatility.
* IVx Average: 40.1, slightly above the norm, highlighting potential big moves.
Trading Plan
1. Bullish Scenario:
* Entry: Above $240 with strong volume confirmation.
* Targets: $244 (short-term), $250 (medium-term).
* Stop-Loss: Below $236.
2. Bearish Scenario:
* Entry: Below $235 on heavy selling pressure.
* Targets: $227.50 (initial support), $220 (secondary support).
* Stop-Loss: Above $239.
Options Strategy
* Bullish:
* Buy 240 CALLs expiring in March 2025 to capitalize on potential upside toward $250.
* Risk management: Exit options if AAPL retraces below $235.
* Bearish:
* Buy 230 PUTs for downside coverage, targeting $220.
* Exit options if AAPL moves above $240.
Thoughts on Direction
AAPL appears to be consolidating for a significant move. The rising wedge pattern and bullish indicators hint at a possible breakout above $240. However, caution is advised as the Stochastic RSI indicates overbought conditions, and price may retest lower levels before continuing its upward journey.
Key Note
Price levels may change with the next premarket session. Traders should adapt to new developments and reassess setups accordingly. If you need updates or guidance, feel free to reach out.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always do your research and manage your risks before trading.
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.