Taking a purely technical look at Apple stock (AAPL), it has corrected to a powerful technical confluence zone last night, which should lead to a not-insignificant rally.
AAPL at $142:
- we are at the weekly 200 simple moving average, which is the 50MA for the monthly
- There is weekly support made back in mid-2017
- Golden pocket .618-.65 zone of the swing low in May '16 to the all time high.
- Bullish divergence in RSI seen on the weekly, but more clearly on the daily chart.
All these should lead to a rally in the near-term. There are two likely scenarios for the rally:
- rally to around $180-200, if it runs out of steam, could cause a drop, which could either come back to $150-160 (more likely), or for a new low (less likely), but allowing long-term buyers to scale in at possibly $120 ranges.
- rally to all time highs (not straight up, but bullish bias all the way), until possible slowdown/recession scenarios occur in 1-2 years.
Either way, this points to a LONG at this level.
AAPL at $142:
- we are at the weekly 200 simple moving average, which is the 50MA for the monthly
- There is weekly support made back in mid-2017
- Golden pocket .618-.65 zone of the swing low in May '16 to the all time high.
- Bullish divergence in RSI seen on the weekly, but more clearly on the daily chart.
All these should lead to a rally in the near-term. There are two likely scenarios for the rally:
- rally to around $180-200, if it runs out of steam, could cause a drop, which could either come back to $150-160 (more likely), or for a new low (less likely), but allowing long-term buyers to scale in at possibly $120 ranges.
- rally to all time highs (not straight up, but bullish bias all the way), until possible slowdown/recession scenarios occur in 1-2 years.
Either way, this points to a LONG at this level.
Trade active
We got a nice bounce to a swing high of about $154.5 as of now, but are not out of the woods yet. Broad markets still look iffy, so if it sneezes, it could take the juice out of this bounce AAPL. I've moved stop-loss up to around $145.9, which gives some room to evaluate.These are just my opinions.
Trade active
Took some profit yesterday at $174, half position, moved stop-loss up with the other half. I expect a pullback soon which I'll re-evaluate.Trade closed: target reached
closed at $210. Looking for another long after a significant retrace.
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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.