Hello traders and investors! Let’s see how Apple is doing today!
It is resisting in a support zone (green line), which was a previous top, and now it is working as a support according to the Polarity Change. Also, it filled a Gap (blue area), and it may work as a support level as well.
Any good reaction near this green line would be a very good sign. On the other hand, if AAPL doesn’t react, then it’ll just resume the bearish momentum to the next support level, the black line around $ 112.85.
Now let’s see the daily chart:
The green line at $ 117.85 is the most important point right now, because it was a previous top, and it worked as a pivot point yesterday, and this led the stock to fill the gap and to the 21 ema again.
If AAPL trades above this green line again, the market will see this movement as a false breakout from a previous pivot point, and the bull trend will resume. The next target would be the All Time High again, especially if it triggers the Pivot Point at $ 125.39 (blue line).
Also, the volume is quite low these days, as evidenced by the red arrow, and this confirms our theory that this movement is just a pullback. According to Dow Theory’s 5th Tenet: The Volume Must Confirm the Trend. A pullback with low volume indicates that it is indeed a pullback, a quick movement against the trend that usually gives great opportunities.
If you liked this idea, please, support it! And follow me to keep in touch with my daily analyses.
Hey nathan what do you think the Iphone 12 5G implications will be on stock price?
Nathan_Black
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@jaredwolowidn, I think it is already priced, but we'll see some volatility for sure!
Meri007
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oh ya its climbing now headed to 119. So youre saying that its bullish bc its trading over the 117 currently ? Thank you so much im brand new trading this year. I have Apple, tesla, lulu, chewy :) Meri
Nathan_Black
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@Meri007, I'm glad to help Meri! So far, Apple is doing very well, and if we see it closing above the $ 117.84 will be a great sign!
cemayvaz
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Thorough and very helpful content. Thank you for sharing your ideas. Being a newbie in trading, I see I have a lot to learn from you.
Nathan_Black
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@cemayvaz, Hey Cemayvaz! I'm glad you like my work, thank you very much for the support!
Stay safe!
cher9al
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HI Nathan.. i do believe the upside is weak and headed for lower levels prior to bullish action. possibly 113 levels ..
thanks for the elaborate work and post!
Nathan_Black
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@cher9al, Yep, this is a real possibility. Either way, be aware of the next support zones!