Updating Apple AAPL into Critical Target Support
Tue, Nov 1, 11:51 AM ET, by Corey Rosenbloom
Will Apple (AAPL) shares hold support at the current pivot or will sellers break price lower?
Get your trades ready and follow along with what happens here at $112.00 per share:
Apple (AAPL) shares resumed the higher timeframe UPTREND with a bullish reversal in May 2017.
From there, shares continued trading higher from the $90.00 key level toward the current $118.00 high.
A negative volume and momentum divergence in October set the stage for a high-probability pullback (see our “Perfect Pullback” Strategy) toward the rising 50 day EMA which overlapped the lower Bollinger Band at $112.00.
With that expected sell-swing retracement complete, we take profits on short positions and look to position to trade the immediate movement AWAY FROM $112.00 per share.
Should buyers once again step into the market, we’d trade a likely bullish rally off support to continue the uptrend.
However, a sudden bearish breakdown that continues through $110.00 opens the market for a steeper, short-term reversal opportunity through the “Open Air” pocket toward $104 per share.
Either way, get your trading fingers ready and trade the departure from $112 without bias.
Follow along with members of the Afraid to Trade Premium Membership 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).
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