Apple: Ready to see new highs!!The technical aspect of Apple is clearly bullish and everything points to it being on its way to new highs.
On Monday, December 30, the DAILY timeframe chart indicated that the MOMENTUM was turning bearish (Bear), and as expected, the price began to fall until it reached the 219 zone, just when the oscillator showed an oversold signal (January 22). Since then, the price began to recover until last Friday, when TREND, STRENGTH and MOMENTUM aligned bullish (Bull), clearly warning us that the price will most likely attack the highs.
In addition to the technical aspect, Apple has an accumulated fall of -2.32%, which makes it easier for us to see new highs in the coming days.
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Strategy to follow:
ENTRY: We will open 2 long positions if the price exceeds the 247.5 zone
POSITION 1 (TP1): We close the first position in the maximum zone of 259 (+5%)
--> Stop Loss at 234 (-5%).
--> Ratio (1:1)
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-5%) (coinciding with the 234 of position 1).
--> We modify the dynamic Stop Loss to (-1%) when the price reaches TP1 (259).
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SET UP EXPLANATIONS
*** How do you know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: If the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% in the rises, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very solid and stable trends in the price can be taken advantage of, maximizing profits.
