AAPL: A Roadmap for the Next Swing Sell Setup

Apple is currently moving in a downtrend, making lower highs and lower lows. Last week, the price has arrived at a new support level of $140. Therefore, this makes the downtrend still very valid, and we will continue to look for sell positions after a correction.

If a correction takes place, then we expect the price to retrace to $164 ~ $172 level, which is the 61.8% ~ 78.6% fibonacci level. This price area also keeps intact with the bearish trendline . From the past price action, we can see that after price has made a new lower low, it retraced, formed a double top pattern, broke and retested the neckline, and then resumed its bearish movement to test the previous low. Therefore, if a retracement takes place, we will be looking for a reversal pattern. After a reversal pattern is formed, we will watch for a breakout and then enter sell positions after a retracement to the neckline area.

With that being said, we don’t trade the correction part, meaning to predict the bottoms from where the correction might occur. If price retraced, we will prepare to enter sell positions. If price continues to fall, we do not enter any trade. We always trade with the trend to increase our winning probabilities.

Price alert can be set @ 164.00 level.

This is a swing trade setup. For a price to resume its bearish trend after a correction usually takes about two weeks of consolidation to form a top; therefore, there is no need to have a FOMO feeling. We have plenty of time to spot a pattern, breakout, and then a retest.

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