Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

Daily EMA Compression and Key Inflection Level in AAPL

Thu, Nov 29, 2:52 PM ET, by Corey Rosenbloom

I’m a big fan of observing EMA Compression set-ups on the charts and Apple (AAPL) is forming a clean pattern on the daily chart that may be worth your attention.

Let’s take a look at the daily chart key levels – and EMAs – to watch and then study the recent arc pattern and intraday divergences at work.

Let’s first focus on the Daily Moving Averages and how they can be helpful in planning trading strategies in AAPL.

Cutting straight to the point, the $600 per share level is the key inflection ‘pivot point’ that will determine bullish or bearish short-term strategies depending on what happens here.

Not only is $600 a simple “Round Number” level, but the important 200 day SMA hovers above the price at $596 which also aligns with the falling 50 day EMA resting at $597.

It’s proper to call this a confluence resistance level, but I prefer seeing these situations as unbiased key pivots or inflection points because a breakthrough above this level would reveal that buyers were strong enough to overtake the logical selling pressure into this known upside target.

Thus, bullish strategies (intrday/short-term) are strongly favored above this level and bearish/cautious strategies are favored under it.

With that in mind, price ALSO supported (briefly) off the rising 20 day EMA at $575.

These indicators become your simple price reference points for any short-term trading or analysis strategies in AAPL.

Apple is classically bearish under $600 but a breakdown under $575 would confirm the bearish bias and trigger new likely breakdown sell signals (more selling/liquidation is likely under $575).

Aggressive traders would look to position on initial breakthroughs of these levels ($600 or $575) while conservative traders may wait for one or two closes (daily close) beyond these levels before participating in a potential breakout from these EMA compression levels.

As an added bonus, let’s take a look at the hourly “Arc” pattern and intraday divergences in motion:

I’m also a big fan of seeing arc trendline patterns like this and note the reversal/breakout signal that often leads to successful short-term trades on a clean/clear breakthrough of falling arc trendlines.

Many traders only draw trendlines as straight lines but that doesn’t neatly capture price when the supply/demand relationship (as seen on the price chart) accelerates in a strong momentum move.

Arc Trendlines help demonstrate these periods of sustained price movement like we saw in Apple from $700 to the $500 level from October to November 2012.

In short, we continue to update arc trendlines and await a breakthrough (especially on a gap) beyond these levels to trigger exit signals (for short-sale trades) and perhaps more importantly, aggressive buy signals for a quick reversal or snap-back play (like we saw from $550 to the current resistance shy of $600).

You can also see the positive momentum divergences ahead of the arc trendline breakthrough.

The important factor NOW is the persistent negative momentum divergence that has undercut the snap-back rally to $600’s key pivot.

Like momentum, volume has trailed lower during the sharp snap-back rally.

From a classical sense, odds favor caution as long as price is under $600 (given the resistance and intraday divergences) however the probabilities will instantly shift on a clean breakthrough above $600, especially one met with higher volume.

Focus on these levels and real-time developments from the daily EMA compression prices at $575 and $600.

Corey Rosenbloom, CMT
Afraid to Trade.com

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

Corey's new book The Complete Trading Course (Wiley Finance) is now available!

blog.afraidtotrade.com


SDI Glossary: "price" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "Trend" Definition
This Article's Word Cloud:   AAPL   Apple   Corey   above   afraidtotrade   also   back   bearish   breakthrough   chart   clean   daily   divergences   especially   favored   from   important   intraday   level   levels   like   look   momentum   only   pattern   pivot   points   price   rally   resistance   reversal   seeing   selling   short   signals   snap   strategies   term   that   these   this   traders   trades   trendline   trendlines   trigger   under   will   would   your

| More

April 24 Rally Rages Market Update and Stock Scan
Fri, Apr 24, 2:31 PM ET, by Corey Rosenbloom

A cynic would ask “When does this rally end?” A trader… couldn’t care less. Buyers ...

Join Me TONIGHT for a Free Coaching Webinar!
Thu, Apr 23, 12:41 PM ET, by Corey Rosenbloom

I wanted to invite you personally to join me live this Thursday evening for a ...

Trend Trading and Triangles for Euro and US Dollar
Thu, Apr 23, 12:21 PM ET, by Corey Rosenbloom

2014 saw a huge trend persist in the currency markets, specifically with the US Dollar ...

Match Your Trading Style with the Market
Thu, Apr 23, 11:31 AM ET, by Corey Rosenbloom

If you’re a developing trader, how would you describe your trading style? If you’re a ...

Join Me Live Thursday for a Free Coaching Webinar
Wed, Apr 22, 1:41 PM ET, by Corey Rosenbloom

I wanted to invite you personally to join me live this Thursday evening for a ...

What We Can Learn from the Many Breakouts in AKAM
Wed, Apr 22, 12:11 PM ET, by Corey Rosenbloom

Not only is Akamai Technologies (AKAM) triggering another successful breakout trade right now, but we ...

April 21 Gap Trap Surprise Market Update and Stock Scan
Tue, Apr 21, 3:11 PM ET, by Corey Rosenbloom

As we’ll see on the intraday chart, today’s session was a continuation of the sideways ...

Bounce Back Bullish Market Update and Scan for April 20
Mon, Apr 20, 1:51 PM ET, by Corey Rosenbloom

And we’re back! Back to the highs of Friday’s activity that is – and should ...

Yes Indeed the Trading Range Continues: What You Need to Know
Fri, Apr 17, 12:41 PM ET, by Corey Rosenbloom

Given that the S&P 500 remains in a broader trading range pattern, today’s sharp downside ...

Quadruple Timeframing the Netflix NFLX Surge
Thu, Apr 16, 3:31 PM ET, by Corey Rosenbloom

Netflix (NFLX) broke powerfully higher overnight on earnings, continuing a multi-year uptrend and confirming the ...

April 16 Daily Stock Market Update and Scan
Thu, Apr 16, 2:11 PM ET, by Corey Rosenbloom

This week has been “Divergence Week” where intraday reversals occurred on clear divergences. It was ...

Four Stocks Strongly Closing at their Highs Today
Wed, Apr 15, 6:11 PM ET, by Corey Rosenbloom

Each day I do a mid-day scan of strong and weak relative strength stocks, but ...

Tax Day Big Bullish Market Update and Stock Scan
Wed, Apr 15, 2:21 PM ET, by Corey Rosenbloom

I hope you’re not shorting this bull-dominated market! Or at least haven’t shorted over the ...

Updating and Planning the Current SP500 Range Play
Wed, Apr 15, 12:11 PM ET, by Corey Rosenbloom

As price continues to trade within a clearly defined range pattern, let’s update our S&P ...

Another Market Reversal Intraday Update Stock Scan April 14
Tue, Apr 14, 3:11 PM ET, by Corey Rosenbloom

If you followed Market Internals yesterday, you had a clear roadmap to trade today’s session ...

Intraday Reversal Market Update and Stock Scan April 13
Mon, Apr 13, 1:51 PM ET, by Corey Rosenbloom

Buyers pushed the market above the breakout but failed as they encountered thin air at ...

Triple Timeframing the Breakout in China FXI
Thu, Apr 9, 2:41 PM ET, by Corey Rosenbloom

Blink and you missed this week’s surge breakout higher in previously stable FXI, a popular ...

April 9 Nothing At All Happening Range Market Update
Thu, Apr 9, 2:21 PM ET, by Corey Rosenbloom

Instead of “A Whole Lotta Shakin’ Goin’ On,” there’s actually a whole lot of nothing ...

April 8 Fed Minutes Reaction Market Update with Stock Scan
Wed, Apr 8, 3:21 PM ET, by Corey Rosenbloom

We’re seeing a Falling Range Day in the context of spiking volatility on a “Fed ...

April 7 Range Day Resistance Market Update and Stock Scan
Tue, Apr 7, 2:51 PM ET, by Corey Rosenbloom

Stocks are taking a breather after yesterday’s strong bullish trend day. Let’s dive inside action ...

Quick Color Commodity Charts to Start the Week
Tue, Apr 7, 11:41 AM ET, by Corey Rosenbloom

Yesterday we updated Gold, Oil, the S&P 500, and the US Dollar Index but let’s ...

Learning the Whale Trade from Doc Severson
Tue, Apr 7, 11:21 AM ET, by Corey Rosenbloom

What’s a “Whale Trade” you ask? And what is the set-up and outcome? Doc Severson ...

Big Bullish Surge off Support Market Update and Scan April 6
Mon, Apr 6, 1:21 PM ET, by Corey Rosenbloom

Markets are rarely boring, that’s for sure. Stocks power-rallied off support this morning as a ...

Reversal Breakout Opportunity Brewing in Coffee and Crude Oil
Mon, Apr 6, 12:41 PM ET, by Corey Rosenbloom

Are we about to see a “Breakout Reversal” trading opportunity trigger for Coffee and Crude ...

Quick Charting Cross-Market Money Flow to Start the Week
Mon, Apr 6, 11:31 AM ET, by Corey Rosenbloom

Where’s money flowing across Stocks, Gold, Oil, and the Dollar as we start the new ...

Join Me Live in Las Vegas! Trader Bootcamp Invitation
Fri, Apr 3, 2:11 PM ET, by Corey Rosenbloom

Start planning your travel now! I’m excited to present live in Las Vegas May 11 ...

Bouncing Bull Market Update and Big Stock Scan April 2
Thu, Apr 2, 2:41 PM ET, by Corey Rosenbloom

We all survived April Fool’s Day! Yesterday saw an intraday bottoming/reversal process and today we’re ...

Key Chart Level Planning for Dow SP500 NASDAQ and Russell April 1
Wed, Apr 1, 10:51 AM ET, by Corey Rosenbloom

With a morning sell-off in motion, let’s take a moment to step back and note ...

Two SP500 Triangles and Updated Selloff Level Planning
Wed, Apr 1, 10:31 AM ET, by Corey Rosenbloom

The stock market fell victim to sharp selling pressure overnight that continued into the morning ...

Big Bullish Breakout Market Update and Trending Stock Scan
Mon, Mar 30, 2:31 PM ET, by Corey Rosenbloom

If Friday’s triangle range day session (see update) was boring, today’s expected breakout is thrilling ...

Wake Me Up When The Range Day Ends Market Update and Stock Scan March 27
Fri, Mar 27, 3:11 PM ET, by Corey Rosenbloom

Wait – was the market open today? So far nothing’s happened. I’m kidding but that’s ...

VSpike Reversal Intraday Market Update and Focused Stock Scan
Thu, Mar 26, 1:51 PM ET, by Corey Rosenbloom

The selling pressure continued today yet a strong V-Spike Reversal off the 2,050 level may ...

Biogen BIIB Shoots the Moon then Falls to Key Support Pivot
Thu, Mar 26, 1:21 PM ET, by Corey Rosenbloom

We saw an interesting price pattern in high-flying Biogen (BIIB) only to see a harsh ...

Selloff Market Update and Trending Stock Scan March 25
Wed, Mar 25, 2:31 PM ET, by Corey Rosenbloom

We have a second sell-session in a row as the S&P 500 moves down from ...

Repeat Bullish Pattern in Twitter TWTR Calls for New Highs
Tue, Mar 24, 11:21 AM ET, by Corey Rosenbloom

Twitter (TWTR) is back in the news with a bullish breakout and a strong recent ...

March 24 International ETF Color Grid Shows Two Strong Countries
Tue, Mar 24, 11:11 AM ET, by Corey Rosenbloom

Which two country ETFs are breaking out to new highs in a continuing uptrend? And ...

Join Me Live for Monday Morning Market Panel Update
Sun, Mar 22, 9:41 PM ET, by Corey Rosenbloom

Join me live Monday Morning for real-time market commentary and strategy planning for the week ...

March 19 Retracement Market Update and Big Stock Scan
Thu, Mar 19, 2:11 PM ET, by Corey Rosenbloom

After the Federal Reserve dropped the “patient” language but reminded us that recent economic conditions ...

Post Fed Money Flow and Dollar Flash Crash Update
Thu, Mar 19, 1:51 PM ET, by Corey Rosenbloom

Markets today retraced part of the sudden movement following yesterday’s Federal Reserve announcement. Let’s take ...

GoPro GPRO Reveals How to Trade Triangle Breakouts
Wed, Mar 18, 3:31 PM ET, by Corey Rosenbloom

One of my favorite breakout trading patterns is the Triangle, and GoPro (GPRO) just gave ...

March 17 Quick Color Sector Strength Grid
Tue, Mar 17, 11:11 AM ET, by Corey Rosenbloom

With the market near all-time highs again, which sectors are the strongest and which are ...

Big Rally Market Update and Trending Stock Scan March 16
Mon, Mar 16, 1:51 PM ET, by Corey Rosenbloom

Counting today, the last four trading sessions have reversed off clear divergences, and today’s session ...

Stocks Falling Market Update and Trending Stock Scan March 13
Fri, Mar 13, 1:51 PM ET, by Corey Rosenbloom

Divergences can be extremely important in planning and trading intraday market reversals. Momentum and – ...

March 12 Big Bull Market Update and Trending Stock Scan
Thu, Mar 12, 2:31 PM ET, by Corey Rosenbloom

As was suggested in yesterday’s post, stocks stabilized off support with positive divergences and today ...

A Quick Update of Cross Market Money Flow Grid March 11
Wed, Mar 11, 4:11 PM ET, by Corey Rosenbloom

There have been some big moves in the Cross-Market (Intermarket) Money Flow landscape recently. Let’s ...

March 11 Support and Market Update with New Stock Scan
Wed, Mar 11, 3:41 PM ET, by Corey Rosenbloom

Today’s session continued the selling pressure of yesterday, but the bears were less relentless. Buyers ...

March 10 Selloff Update and Trending Stock Scan
Tue, Mar 10, 3:11 PM ET, by Corey Rosenbloom

The selling pressure continued today on the support breakdown under 2,070’s pivot. What resulted – ...

Five Strong Stocks Holding Up Surprisingly Well During the Pullback
Tue, Mar 10, 10:21 AM ET, by Corey Rosenbloom

During market pullbacks, it’s often helpful to step inside the market to see which stocks ...

Returning to a World Where Breadth Divergences Matter
Fri, Mar 6, 12:51 PM ET, by Corey Rosenbloom

It’s easy to get caught up in thinking “The market will go up forever!” when ...

Apple AAPL at Key Trading Pivot Level on Dow Jones News
Fri, Mar 6, 11:51 AM ET, by Corey Rosenbloom

Is Apple (AAPL) a buy right here at a key inflection level as news broke ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

Daily EMA Compression and Key Inflection Level in AAPL | Self Directed Investor | Copyright © 2008 - 2015, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.