Following the completion of the last 1-5 impulse wave pattern, as postulated by the Elliott Wave Theory, Apple's shares developed a classic ABC correction. Now that the correction is over, the uptrend is ready to be resumed, allowing traders to go long.
Notice that after the ABC correction was completed, a Pennant pattern emerged, which is typically taken to indicate bullish reversals. This was the first major indication of mounting bullish pressure. The currently emerging Flag pattern represents the second major signal - the temporary consolidation of the price action allows traders to go long while the price is ranging in the short-term.
Finally, the very robust quarterly earnings performances of Tesla (reported on Monday), Microsoft, and Alphabet (both reported yesterday), signifies the robust performance of the U.S. technology sector as a whole. This substantiates the expectations for continued price appreciation in the foreseeable future.
After the price action reaches the first target, traders can change their fixed SLs for floating TPs in order to squeeze the maximum out of the following upswing into uncharted territory. Any potential throwback in an established uptrend allows traders to add to their existing positions.
Notice that after the ABC correction was completed, a Pennant pattern emerged, which is typically taken to indicate bullish reversals. This was the first major indication of mounting bullish pressure. The currently emerging Flag pattern represents the second major signal - the temporary consolidation of the price action allows traders to go long while the price is ranging in the short-term.
Finally, the very robust quarterly earnings performances of Tesla (reported on Monday), Microsoft, and Alphabet (both reported yesterday), signifies the robust performance of the U.S. technology sector as a whole. This substantiates the expectations for continued price appreciation in the foreseeable future.
After the price action reaches the first target, traders can change their fixed SLs for floating TPs in order to squeeze the maximum out of the following upswing into uncharted territory. Any potential throwback in an established uptrend allows traders to add to their existing positions.
