AAPL: TA for tomorrow trading (10/07/2024)Key Levels:
Resistance Zones:
228.01: This level is acting as a strong resistance, as price has struggled to break above it during previous tests.
227.34: This is a short-term resistance level, which aligns with recent price rejection. The price will need to break and hold above this level to move higher.
Support Zones:
225.67: This is an immediate support zone, where the price has previously bounced.
223.01: This is a significant lower support level that acted as a floor during the recent price action. A break below this level could signal a further downside move.
Price Action:
There’s a range-bound movement in the recent price action, indicated by the green rectangular box. The price has been consolidating within this range between 223.01 and 228.01, with no clear breakout in either direction.
The formation of a potential rising wedge can be seen from the lows near 223 to the current price level. This could indicate a possible breakout or breakdown soon.
Volume Analysis:
There has been a noticeable increase in volume during the recent moves upwards, but the volume tapered off toward the upper range. This could suggest a lack of conviction in breaking resistance.
If volume picks up near resistance at 228.01, this would be a key indicator of a possible breakout.
Indicators:
The chart shows oscillators moving sideways, indicating indecision and consolidation in the market. The next few candles will be crucial for determining a breakout or breakdown.
Strategy for Tomorrow:
Bullish Scenario: If AAPL breaks above 228.01 with strong volume, it could push higher towards 230 or beyond. The immediate resistance after that will likely be around 231-232.
Bearish Scenario: If the price gets rejected at 228.01 or breaks below 225.67, it could move towards testing the 223.01 support level. A break below 223.01 could trigger more downside momentum, with a target near 220.
Entry/Exit Points:
Bullish Entry: If AAPL breaks above 228.01, consider entering a long position with a target of 230-231. Place a stop-loss below 227.34 to manage risk.
Bearish Entry: If AAPL breaks below 225.67, a short position could be considered with a target of 223.01 or lower. Place a stop-loss above 227.34 to minimize risk.
Watchlist:
Breakout above 228.01: Look for strong volume confirmation.
Breakdown below 223.01: Watch for selling pressure to increase.
