Trading Apple AAPL at Key Pivot Level

Jun 12, 2015: 2:20 PM CST

Apple (AAPL) shares face a key support pivot level from which we can plan our trades off this level.

Will support hold once again?  If so, play the bounce higher in the range.

Or will “this time be different” as sellers overtake buyers and crash price under support?

Here’s the level and our target planning strategies:

Apple (AAPL) shares once again trade within a sideways rising rectangle (or range) pattern.

The current focal point is the $126.50 to $128.00 level which reflects the confluence of…

  • The Rising 50 day EMA ($128.90)
  • The Lower Bollinger Band ($126.92)
  • A Rising Hand-Drawn Trendline ($127.00 level)

Note the green “Support Bounce” buy (bullish) Trade Opportunity should price once again rally higher.

Otherwise, we have a sudden sell pathway setting up under $126.50 and $126.00.

Here’s the chart if we pull back the perspective from the key levels shown above:

We can now see two prior examples of price trading sideways in a consolidation.

Both times, price continued bouncing within the range until a future upside price breakout occurred.

The focal point is again the $126.00 or even $125.00 level as highlighted.

A “This Time is Different” Breakdown event could trigger a liquidation/sell-swing toward the $118 level.

Otherwise, we’ll be looking for a “There They Go Again” outcome where price once again bounces up off support at least toward the top of the range – which is about $131.00.

Don’t be biased – be ready to react to either viable outcome and trade the movement away from current levels.

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Corey Rosenbloom, CMT
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1 Comment

One Response to “Trading Apple AAPL at Key Pivot Level”

  1. Barak Says:

    It’s really good if we are able to do trade using pivot points since this is a very proven way and that can seriously help us a lot, so that’s why we must learn this. It is not possible to do that without practice, so that’s why we must practice regularly. I am working with OctaFX broker and it’s a really solid company with great benefits especially the 8 USD no deposit bonus, so with that we can practice regularly to get rewards!