This is pure technical and is rather directed towards experienced traders with 15+ years experience. Apologies to those less versed, I will do my best to explain the above as simple as possible. Go ahead and mark this one down as you'll witness later how the stock will have performed exactly as stated here. Lines and connections have been averaged using step-line on linear for higher precision. Using the 'monthly' chart was necessary in order to assess and conclude a far-out forecast. (zoom in/out to reveal more)
Let's begin with the missing leg and the current dominating formation (F1/F2). A missing leg can be a good thing. It signals high demand and higher future value, but it also signals a future correction to that level (one day). For the layman, imagine building a house on a partially completed foundation. Now, this isn't a big issue just yet, but one day it may be.
Moving on, "half-crossings" are considered neutral. It can only be bullish if the last leg pushes off the upper formation line (F1), and continues higher above the previous high. If not, use the rule of thumb by measuring the excess peak performance above F1, mirroring it below the lower formation line F2 (approx. target = S2).
Currently AAPL is trying to push past previous highs which is getting increasingly more difficult considering the constant decreasing volume, as you can clearly see below the chart (turquoise line). Here it is critical to note, that in the unfortunate case AAPL won't make it to the upper b-band line, an immediate reverse is to follow, thereby invoking the necessity to cross the lower b-band line, later on.
The only bullish potential you have as of now, is by passing the last 'monthly' PSAR point at around $234, which is just around the corner of touching the upper b-band line at around $236'ish. Remember that the b-band value changes and must be reassessed each month anew.
Last but not least, and this is a big one. Marked twice as 'AE', translates to 'Adam & Eve'. If AAPL fails to reach the upper b-band line and decides to trend lower (which is highly likely), it will likely form and complete a so called Adam and Eve Reversal (look it up). Completing an 'A&E' right at the major support line, will also mirror the same peak performance to the downside (S2 or lower), and consolidate there. Take note that P1 has a parallel sibling (P2), this is usually already confirming future trends but obviously requires a third touch to complete. Although, the ability to mirror such a support line early on can very well help you aim for what's coming ahead.
This analysis is not necessarily negative, as AAPL is an incredibly great performing stock which can always be relied upon. A correction as such will simply reflect a general market correction. This analysis goes hand in hand with my unpublished SPY analysis by the way. And so I believe, the truly talented traders out there (and hopefully everyone else) will use this correction to bank both ways.
Good luck
Let's begin with the missing leg and the current dominating formation (F1/F2). A missing leg can be a good thing. It signals high demand and higher future value, but it also signals a future correction to that level (one day). For the layman, imagine building a house on a partially completed foundation. Now, this isn't a big issue just yet, but one day it may be.
Moving on, "half-crossings" are considered neutral. It can only be bullish if the last leg pushes off the upper formation line (F1), and continues higher above the previous high. If not, use the rule of thumb by measuring the excess peak performance above F1, mirroring it below the lower formation line F2 (approx. target = S2).
Currently AAPL is trying to push past previous highs which is getting increasingly more difficult considering the constant decreasing volume, as you can clearly see below the chart (turquoise line). Here it is critical to note, that in the unfortunate case AAPL won't make it to the upper b-band line, an immediate reverse is to follow, thereby invoking the necessity to cross the lower b-band line, later on.
The only bullish potential you have as of now, is by passing the last 'monthly' PSAR point at around $234, which is just around the corner of touching the upper b-band line at around $236'ish. Remember that the b-band value changes and must be reassessed each month anew.
Last but not least, and this is a big one. Marked twice as 'AE', translates to 'Adam & Eve'. If AAPL fails to reach the upper b-band line and decides to trend lower (which is highly likely), it will likely form and complete a so called Adam and Eve Reversal (look it up). Completing an 'A&E' right at the major support line, will also mirror the same peak performance to the downside (S2 or lower), and consolidate there. Take note that P1 has a parallel sibling (P2), this is usually already confirming future trends but obviously requires a third touch to complete. Although, the ability to mirror such a support line early on can very well help you aim for what's coming ahead.
This analysis is not necessarily negative, as AAPL is an incredibly great performing stock which can always be relied upon. A correction as such will simply reflect a general market correction. This analysis goes hand in hand with my unpublished SPY analysis by the way. And so I believe, the truly talented traders out there (and hopefully everyone else) will use this correction to bank both ways.
Good luck
Comment:
If it fails to beat prior high of 226.42 and reverses under 217 (creating a double-top), start taking short positions.
Trade closed: target reached:
Confirmed 'daily' double-top. Should reverse to 210'ish. It still has to close the week sub 210, once it does we'll be able to confirm sub 200's.
