Apple AAPL Returns to the Swing Highs Dec 28

Dec 28, 2016: 1:01 PM CST

What’s going to happen next with big trending stock Apple (AAPL)?!

Let’s plot the Daily Chart and highlight the two trade plans for what happens next at the highs.

Apple (AAPL) surged from July to October, boosting price from $90.00 toward $120.00.

Price fell from a divergence at resistance near $118.00 per share which is exactly where price is right now.

You can build a simple, strategic trade based on the DEPARTURE from the $118.00 level.

Trades don’t have to be elegant or fancy; they just need to capture price movement.

When price retests a key level – like a prior high – bulls and bears (buyers and sellers) battle for dominance.

One side will win while one side will lose.

Instead of trying to PREDICT what’s going to happen here – all the fundamental or technical reasons why Apple HAS to breakout to new highs or collapse into a new bear market – why not keep it simple and join the winning side of the battle?

In this case, it looks like bears might win a short-term victory in the form of a pullback or retracement DOWN AWAY from the $118.00 level toward $114 or even $112 or perhaps lower.  That’s your bear “fade” pathway.

IF instead buyers overtake sellers and force a short-squeezed bullish breakout, join them; trade long on a breakout price pathway above $118 toward $120 or higher.

Simple right?

It’s harder in practice – use $118 as the basis for any trades in Apple right now.

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Corey Rosenbloom, CMT

Afraid to Trade.com

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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).”

2 Comments

2 Responses to “Apple AAPL Returns to the Swing Highs Dec 28”

  1. Intelligent Trend Follower Says:

    “Trades don’t need to be elegant or fancy, they just need to capture price action”

    Very well said Corey. This is great trading advice!

  2. Ranawat Says:

    It’s awesome when there is such trend build up, as through this we can gain so much, so we just need to make sure we trade with proper and approach, it’s easier for me with broker like OctaFX, as they are ever so cool with the long list of benefits and facilities that include small spreads at 0.1 pips for all major pairs while there is also 50% bonus on deposit which is use able too, so I like it all so much more!