AAPL's Next Move: Bearish Momentum or Potential Reversal? Nov. 6Current Trend & Price Action
From the hourly chart, AAPL shows a downtrend, indicated by a pattern of lower highs and lower lows. The stock is consolidating near the lower boundary, hinting at possible support around $220, a level that could act as a pivot for either a reversal or further downside.
Support & Resistance Levels
Immediate Resistance: $223.85, marked by recent highs.
Key Resistance Zone: $234 - $236. Breaking above this zone could suggest bullish momentum.
Immediate Support: $220, a crucial psychological and technical level.
Critical Support Zone: $218 - $219. A break below this area could accelerate selling pressure.
Indicators
Moving Averages (15 EMA and 161 EMA): AAPL remains below both EMAs, signaling bearish sentiment. The EMAs serve as dynamic resistance, with the stock attempting but failing to close above them recently.
MACD: Shows potential for a bullish crossover but remains in bearish territory. Watch for a crossover confirmation, which could indicate a short-term bounce if volume supports it.
Trading Strategy & Entry/Exit Points
Bounce Play: If AAPL holds above $220, a possible entry for a short-term reversal play could be considered. Look for entries near $220 with a target around $223.85 and a stop below $218.
Breakdown Play: If AAPL falls below $220 with strong volume, consider a short position targeting $218 and lower levels if momentum persists.
Disclaimer: This analysis is for educational purposes only and is not financial advice. Please conduct your own research and trade responsibly.
