Apple AAPL Appears Back at the Highs Feb 1
Wed, Feb 1, 1:31 PM ET, by Corey Rosenbloom
Just like that, Apple (AAPL) shares surged toward the price highs of early 2016.
Will the bulls keep making money by levitating this stock higher in a breakout? Let’s see!
We see the strong uptrend that ended in early 2015 at the $130 per share level as negative divergences and distribution took price down toward $90.00 per share in early 2016.
Positive divergences and accumulation (active buying campaigns by large funds) reversed the downtrend through 2016 to where we are now at the beginning of 2017.
A bullish reaction to last night’s earnings served as a bullish catalyst to propel shares to the prior high.
The key here is to trade the departure away from the $130 pivot, be it a “fade” or immediate retracement lower to fill in part of the gap (see your Daily Chart) or else continue the bullish accumulation campaign through a breakout to new highs.
Ultimately, stocks which are strong tend to get stronger, and we would expect additional bullish action should buyers push Apple (AAPL) shares beyond the $130 pivot.
Focus on this level and formulate your trades based on what happens right here, 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
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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).”
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