AAPL Technical Analysis for December 10, 2024Price Action:
* Opening Movement: At market open, AAPL exhibited a strong upward momentum, driven by sustained buying pressure, pushing the price above key resistance levels.
* Mid-Day: Consolidation occurred around the $247.5 zone, aligning with significant GEX levels, indicating a potential pause for profit-taking and repositioning by traders.
* Closing Trend: The price continued testing the $247.5 level but failed to breach higher resistance zones near $250, showing sellers gaining control near critical gamma levels.
Key Indicators Observed:
1. GEX Indicator:
* $250 Level: Marked as the highest positive GEX, acting as a psychological resistance for traders, confirmed by price hesitation and lower volume near this zone.
* Support at $240: The GEX8 level at $240 served as a critical support level, ensuring downside protection and absorbing selling pressure during earlier intraday pullbacks.
2. Trend Lines:
* The upward sloping trendline provided structural support for the price, confirming the bullish sentiment for the day.
3. MACD:
* The MACD showed a bullish crossover earlier in the day, coinciding with the breakout above $245. However, the histogram started to flatten towards the close, signaling reduced momentum.
4. Volume:
* A noticeable volume spike during the break above $245, indicating strong participation. However, the fading volume near $250 suggests waning bullish momentum.
GEX Indicator Insights:
The Gamma Exposure (GEX) tool proved invaluable in identifying critical support and resistance zones:
* Why it Matters: GEX quantifies gamma levels based on options market activity, offering a transparent view of zones where market makers are likely to hedge, influencing price behavior.
* What Was Observed:
* The resistance at $250 aligns with high positive gamma, making it challenging for the price to push higher unless significant buying pressure emerges.
* The bounce from $240 confirms GEX8 as a robust support level, providing confidence to traders to go long at dips.
* Technical Advantage: By incorporating GEX, traders can anticipate areas of increased volatility or stagnation, enhancing decision-making precision.
Trading Plan for Tomorrow:
Scalping Strategy:
1. Entry Points:
* Long Above $247.5: Look for a breakout with strong volume confirmation.
* Short Below $245: If the price fails to hold and breaks below $245, target the $240 support level.
2. Stop-Loss: Set tight stops at $1 above or below entry points to manage risk.
Swing Trading:
1. Bullish Scenario:
* If AAPL closes above $247.5 with volume, target $250 with an extended swing goal near $255.
2. Bearish Scenario:
* A close below $245 opens room for a pullback to $240. A further breakdown could test $235.
Disclaimer:
This analysis is for informational purposes only and should not be construed as financial advice. Always perform your due diligence before making any trading decisions
