APPLE after crushing earnings expectations. Let's see the chart!
As you may know, Apple beat earnings expectations by almost 30% / revenue expectations by 10% / Growing revenue by 36% YOY. Those are great bases for growth. Now, Let's go 100% into the chart and see what conclusions we can make.
Current Situation:
a) The price is inside an ascending structure defined by the last higher highs and higher lows since September 2020. The lower zone is overwhelmingly clear, and the higher zone is composed only of two contacts, and we may be close to observing a new contact again due to the last rising impulse.
b) Besides the previous structure, we can also see the ascending trendline using the most external price levels of the current trend since the bottom of 2020. We have cloned it, and with that, we have an orientation of possible ambitious targets.
So, what's the plan here?
We have divided our view into two categories. Either the price can break the yellow structure, or it is not. If the price cannot break it, we may see a reaction on the higher level of the ascending yellow structure and a movement towards the next support level (the ascending trendline). This is not the most exciting scenario because it shows us that the price keeps trading in a range.
However, if the price breaks the yellow structure, that's the scenario we are interested in. Why? Because that may be the beginning of a new aggressive impulse towards the higher trendline of the channel.
Let's see some examples of this behavior in the past.
How long can it take for the movement to be completed and reach the expected bullish target?
We should be thinking, at least, between 150 - 250 days.
Please consider that nobody knows what the price will make. In the end, the only thing we can do is look for statistical patterns and develop setups based on random win rates (something like 45% -55%) and risk-reward ratios above 2. That way, you can develop an "edge" or a "positive expectancy" or a "statistical advantage," However you want to name it, After several setups.
Protect your capital, make your own due diligence, and trade safe! Thanks for reading.
Current Situation:
a) The price is inside an ascending structure defined by the last higher highs and higher lows since September 2020. The lower zone is overwhelmingly clear, and the higher zone is composed only of two contacts, and we may be close to observing a new contact again due to the last rising impulse.
b) Besides the previous structure, we can also see the ascending trendline using the most external price levels of the current trend since the bottom of 2020. We have cloned it, and with that, we have an orientation of possible ambitious targets.
So, what's the plan here?
We have divided our view into two categories. Either the price can break the yellow structure, or it is not. If the price cannot break it, we may see a reaction on the higher level of the ascending yellow structure and a movement towards the next support level (the ascending trendline). This is not the most exciting scenario because it shows us that the price keeps trading in a range.
However, if the price breaks the yellow structure, that's the scenario we are interested in. Why? Because that may be the beginning of a new aggressive impulse towards the higher trendline of the channel.
Let's see some examples of this behavior in the past.
How long can it take for the movement to be completed and reach the expected bullish target?
We should be thinking, at least, between 150 - 250 days.
Please consider that nobody knows what the price will make. In the end, the only thing we can do is look for statistical patterns and develop setups based on random win rates (something like 45% -55%) and risk-reward ratios above 2. That way, you can develop an "edge" or a "positive expectancy" or a "statistical advantage," However you want to name it, After several setups.
Protect your capital, make your own due diligence, and trade safe! Thanks for reading.