A new record high is still being set by the stock, which is a great indication for the future. It signals strong interest in the stock and secures further price increase in the near future. But that doesn't mean the stock is out of the danger zone yet. Rule of thumb method is to measure the difference between the ATH and the following peak, mirror it above, and you'll get the level which is required for the stock to remain long-term bullish. Anywhere above that level, the stock is allowed to form any new formation out of the current one. Failing to reach that level will send the stock to exit the channel below, where it can create a new formation.
The stock has traded as expected in the past two weeks, but it looks as if the run could soon be over. Last week's candle shows the current weakness of the stock, and will ultimately transmit to the current week's candle. This week we are likely to expect a run above 240 but I doubt i'll go much further than guideline 'x' (if at all arrive at). By the end of the week I personally expect the candle to invert and end up closing at 'A1'. A sharp drop from there next week is absolutely possible. Note that technically the stock must touch or cross the upper trend line to remain bullish. If it doesn't, the channel must be deemed 'busted'. From there it'll be not much longer until it has to exit the channel down below. This could also mean an additional weakness seen on the 'monthly' chart which could ultimately form a colossal 'adam & eve reversal' (as suggested in a previous chart), but we don't have to worry about that right now.
Additional weaknesses can be seen in the performance foundation throughout the year which most of the times requires the stock to retrace. Weekly PSAR series are catching up with the stock, and if broken, can send the stock to low 200's. Most important to note is the current upper b-band line which has already flattened out! This would mean that any surge above it (without the b-band line shifting back up) will translate to a bull-trap (and reverse shortly after).
These are all valid factors that need to be considered before making long-term investments with this stock. Last but not least, as we all know AAPL well to be a follower of the markets, I would rate it rather unsafe to trade for the time being. If you are long the stock, you might wanna get out and trade something else for a while.
The stock has traded as expected in the past two weeks, but it looks as if the run could soon be over. Last week's candle shows the current weakness of the stock, and will ultimately transmit to the current week's candle. This week we are likely to expect a run above 240 but I doubt i'll go much further than guideline 'x' (if at all arrive at). By the end of the week I personally expect the candle to invert and end up closing at 'A1'. A sharp drop from there next week is absolutely possible. Note that technically the stock must touch or cross the upper trend line to remain bullish. If it doesn't, the channel must be deemed 'busted'. From there it'll be not much longer until it has to exit the channel down below. This could also mean an additional weakness seen on the 'monthly' chart which could ultimately form a colossal 'adam & eve reversal' (as suggested in a previous chart), but we don't have to worry about that right now.
Additional weaknesses can be seen in the performance foundation throughout the year which most of the times requires the stock to retrace. Weekly PSAR series are catching up with the stock, and if broken, can send the stock to low 200's. Most important to note is the current upper b-band line which has already flattened out! This would mean that any surge above it (without the b-band line shifting back up) will translate to a bull-trap (and reverse shortly after).
These are all valid factors that need to be considered before making long-term investments with this stock. Last but not least, as we all know AAPL well to be a follower of the markets, I would rate it rather unsafe to trade for the time being. If you are long the stock, you might wanna get out and trade something else for a while.
Trade closed: target reached:
New all-time-high requirement reached. Next requirement is upper channel trend line. If it reverses under 'A1' before touching –> trend change (short)
Comment:
A 'weekly' close above the upper channel trend line can send the stock towards 280.
