In the last couple of days, AAPL has been stuck within a wedge. The RSI has also been confined between two very close trendlines. In the short term, we know that AAPL is hitting a roof, and will either breakout or fall back down. As this is a very tight wedge, and it is falling on a long term support line, I expect a breakout rather than a breakdown. However, if there is a wide market sell off, AAPL could be susceptible to a break down. For those looking to trade the breakout, I would watch for the RSI to break above the resistance line, and for the price to go upwards of 120. If it jumps above that, I would consider taking an entry and selling at the open of September 3rd, in the 126 range. I would set a stop loss below the long term resistance line, in the 110 area.
@lkdahleh@Kevhon I would reckon there’s a high chance of this happening, as this is a strong stock. However, if we see another freak 5-6% sell off in markets (low chance) then this stock could lose support.
lkdahleh
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@Isaiahgr3, A classic bear trap today. Expect gap up and another leg higher. TP 125.4 SL 109.9. Shorts will be tightly squeezed in the coming days :-)
Isaiahgr3
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@lkdahleh I couldn’t agree more. Also worth mentioning: the last times the RSI touched its long term support line there was a breakout right after.
lkdahleh
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I guess markets just rolled over. Expect a bit of a bounce and then downward continuation. Support at 110 was breached
Isaiahgr3
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@lkdahleh in after hours trading the price is trading at 112 so maybe we haven’t seen a decisive break... an open below 110 is very bearish
Isaiahgr3
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@lkdahleh sorry I was reading the wrong chart. you’re right expect the bears to have control in the short term
thebrewer35
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100%
Isaiahgr3
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@thebrewer35 thanks for the comment! What would you say your price target is?