Apple AAPL Returns to the Swing Highs Dec 28
Wed, Dec 28, 1:11 PM ET, by Corey Rosenbloom
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.
It’s harder in practice – use $118 as the basis for any trades in Apple right now.
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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