A Flag and Planning the Next Swing in Apple AAPL

Jan 9, 2015: 12:24 PM CST

Which way will top trending stock Apple (AAPL) swing next?

Let’s pinpoint the key levels and chart our trade planning pathways!

We’ll start with the Daily Chart for a broader overview:

I enjoy keeping analysis and trade planning simple.  With that, let’s start with the basic uptrend in motion (bullish unless proven otherwise) and the falling trendline channel which we can describe as a “Flag.”

Right now, the focal point for trading Apple is the $112 level – it’s the falling upper trendline.

IF price REMAINS within the trendlines, then we can expect one more swing down through $110 toward the $104 confluence level (price and Fibonacci).

We’ll use $110 as our bearish short-sale trigger level.

However, a BREAKOUT scenario unfolds as price pushes up and away from $112 and $113.  This would allow bullish trades above $114 to target $115 and then as high (or above) the $120 level.

Be objective and plan for either outcome and let your trades develop naturally as price moves toward or away from these pivot levels.

We can actually see them clearer on a lower frame (2 hour) chart:

The simplest statement I can give – using the levels above – is that the $110 to $112.50 region (where we are currently) is the NEUTRAL zone;

a trigger-break under $110.00 sets in motion our BEARISH short-sale plan to target $105;

and an eventual breakthrough above $112.50/$113.00 sets in motion a play toward $115 then perhaps $120.

Use other techniques to plan your own trades but always incorporate these simple levels within the structure into your analysis.

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

1 Comment

One Response to “A Flag and Planning the Next Swing in Apple AAPL”

  1. Monjir Says:

    Planning is vital no matter if it’s a job or business we do but if we don’t have a plan as what we could do than we should be not be really trading as it will cause great losses. For me it’s not a major issue since I am working with OctaFX broker, it is just outstanding since we are able to get 8 USD free money to start trading with and also we get full support and we can even withdraw our money easily.