madbroke

$AAP REVERSAL TO THE UPSIDE?

Long
NASDAQ:AAPL   Apple Inc
I've been a lot more active in reading other Investors' ideas and really enjoying the community on this platform. I've read a few different trading ideas but the one I linked was one I am closely in agreeance with.

Sentiment: Although my previous thoughts on $AAPL reaching the $135 mark before returning to ATH's still carries a strong weight. I have gone over this week's trades, am happy with the profit I have taken from my swing trades, and have positioned myself for a reversal to the upside.

Trend Analysis: As noted in @philipschnapp trading idea, we can see a clear inverse head and shoulders . Although the volume on Oct 14 was not supportive of the large body candle. We can clearly see the buyers stepping in on Oct 13 with a bullish hammer candle. This leads me to believe this move to the upside is supported by the majority. With an inverse head and shoulders , we should also note that they often occur after a recent ATH . Let's also take note of the close above the 50 EMA on Oct 14 as well as the MACD's crossing over the signal line.

Trading Plan: I'll most likely position myself with CALL options and shares of $AAPL . I've already entered a small position and will wait for the $145 breakout to place a stronger position.

WARNING: We will continue to keep an eye out for further validation in our trade. There are a few key signals we'll need to watch out for. #1 is the $145 resistance. We'll need to make a clear breakout from it with strong volume . #2 is the overall market sentiment. I believe it has been recently running up due to the Banking sector's earnings coming out soon. Also, taking note of the FED's move on tapering and inflation . Clear guidance is what investors needed and are receiving.