Quick chart reading for AAPL, and our possible entry
below $150 - $155 is our ideal "buy the dip" level - as shows on the chart - and a repeat of the previous cycle of a 10% upside. was a good trade.
the curious thing, this is very similar to the scenario expected from MSFT, that i just posted - also an around ~10% drop from the high - and a similar ascending channel. Interesting how these big players share similar dynamics.
the main difference with the AAPL setup, is that the demand is still high (V.Viewer at the bottom panel) - so retail trading is still finding opportunities to buy into the current long wave - it's understood that some find AAPL more exciting with more hype around it based on latest news relative to the "good old boring" MSFT
but AAPL chart is giving signs of weakening - big run up days that fail to reach previous highs - and couple of shooting stars - so we can expect AAPL may continue to drag along the top channel levels for a while before the actual decline - both scenarios marked on the chart
we can be selling cash-secured Puts instead of a straight limit entry long at our expected support levels. ideally we want to be in long before the holiday season or the next earnings in Jan.
this is not a prediction nor a trade recommendation - just few thoughts and a possible scenario out of many - no one can predict the future - please DYOR before trading. -- good luck!
This chart shows that between 19th Oct 21' and 16th Nov 21' there has been consider accumulation, during what is also marked as an earnings/dividend period. The Volume Viewer also confirms a Bull bias during this period, even though individual volume bars mostly sit below average - possibly indicating that the heavier previous selling period (marked as down arrow on 10 Sept 21', through to 14th Oct ) has ended. Resistance to this accumulation phase was broken on 17th & 18th Nov - with considerable volume. The 18th recording the largest bar of volume seen since the periods just discussed. The bar on the 30th Nov then pops out as very bullish, the highest volume recorded so far, plus a wide trading range, making it a high effort to high reward bar. Yes, the Shooting Star on the 1st Dec shows profit taking place, as volume is also high again. But the next bar, 2nd Dec fails to meet the test of an Evening Star formation, as it gaps down to open in the 160 zone, but closes up higher into the 165 area with strong buying. The oscillator nature of the BSI indicator, indicates a possible retracement, rather than reversal. Creating the possiblity of 160 being a Higher Low of an up trend. Catching the trough of a wave dipping into 155 is not unreasonable, during what could currently be read as a markup phase.
RedKTrader
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@DjjCI8i2, thanks for the detailed analysis - loved it ! looking forward to seeing you publish more and sharing with the community. and please do share more comments
DjjCI8i2
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@RedKTrader, :) . Yeah, my psychology really comes through as Analytical Behaviour type! Appreciate such encouraging words coming from a pinescript developer I really admire.