This time I'm taking a look at AAPL chart.
It has shown an unbelievable move to the upside since god knows when.
But what concerns traders in these situation is, when they see tremendous moves in a direction, they get both scared (that it might end and reverse) and greedy (that they're missing out all these huge profit).
Now I've done an analysis starting from the weekly chart and I gotta tell you, it was pretty straight forward.
We ARE right now and my long term target for AAPL is 125.00.
But as of right now, we're going to end our latest rally which was the 1st wave in the 3rd wave (according to google earth!).
Now it's the time to see retracements. Maybe just a simple abc as I drew.
I'm not going to be greedy looking at the fact that we are heavily , so my target would be at 90.75 which is the classic of the upmove.
You might trail your stop for better profits if you see heavy interest in the short direction.
We're gonna set our stop a little bit above the zone and leave room for the fake outs and stop runners.
1.00 stop above our entry would be enough and as you can see the target is more than 12.00
So the overall risk reward would let us close our positions partially along the way as our risk/reward ratio is prety huge