Price At Key Pivot Range: Bull / Bear Swing Setup
(Background) Since Apple has feel from grace many people have lost a great deal of money trying to catch this massive falling knife it has literally destroyed thousands of Irresponsible hedge funds and and individual investors and traders a like.
(Summary) This chart is highlighting the current distribution channel that APPL has carved out the last few months and pointing out some key pivot areas and price behaviors to watch to better navigate the trading flow of AAPL's price movement .
1.) Distribution Channel - This is most important aspect of this chart until price is able to break and hold above this channel price is technically still in a downtrend. This channel has stopped every recent rally in its tracks a break and hold above this channel especially on high volume may be the first clue that distribution may be ending in AAPL .
2.) 100 EMA - This is another important element of this chart. AAPL has not been able trade above this moving average all year if price is able to reclaim the 100 EMA this may further confirm that distribution has ended in AAPL.
3.) Targets on Bullish Break Out - I have highlighted a few possible targets / resistance zones for the scenario of a bullish breakout highlighted with the (yellow) and (orange) dotted lines. I have also listed several pivot highs that may also act as resistance zones.
4.) 200 MA - The 200 MA is naturally huge psychological area as well I have highlighted this on the chart as well as it may also act as type of price magnet if price is able to successfully break this downtrend. ( A break and hold above the 200 MA would be further confirmation distribution has ended in AAPL ).
5.) Head Fake - Every once in awhile price may trade above a major resistance area only to sell off this is where the importance of volume usually comes in play if there is a large volume spike it usually adds to the validity of the move.
6.) Pullback - Most of this trade summary has been oriented around a bullish argument but as a trader I must view a trade setup from multiple angles if AAPL is unable to breakout of this distribution channel it is technically still in a downtrend and probability favors a short trade. This is why gauging price action the next few days will be important.
(Summary) This chart is highlighting the current distribution channel that APPL has carved out the last few months and pointing out some key pivot areas and price behaviors to watch to better navigate the trading flow of AAPL's price movement .
1.) Distribution Channel - This is most important aspect of this chart until price is able to break and hold above this channel price is technically still in a downtrend. This channel has stopped every recent rally in its tracks a break and hold above this channel especially on high volume may be the first clue that distribution may be ending in AAPL .
2.) 100 EMA - This is another important element of this chart. AAPL has not been able trade above this moving average all year if price is able to reclaim the 100 EMA this may further confirm that distribution has ended in AAPL.
3.) Targets on Bullish Break Out - I have highlighted a few possible targets / resistance zones for the scenario of a bullish breakout highlighted with the (yellow) and (orange) dotted lines. I have also listed several pivot highs that may also act as resistance zones.
4.) 200 MA - The 200 MA is naturally huge psychological area as well I have highlighted this on the chart as well as it may also act as type of price magnet if price is able to successfully break this downtrend. ( A break and hold above the 200 MA would be further confirmation distribution has ended in AAPL ).
5.) Head Fake - Every once in awhile price may trade above a major resistance area only to sell off this is where the importance of volume usually comes in play if there is a large volume spike it usually adds to the validity of the move.
6.) Pullback - Most of this trade summary has been oriented around a bullish argument but as a trader I must view a trade setup from multiple angles if AAPL is unable to breakout of this distribution channel it is technically still in a downtrend and probability favors a short trade. This is why gauging price action the next few days will be important.
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