Watching a Bullish Breakout in Apple AAPL Shares
Thu, Jul 13, 9:51 PM ET, by Corey Rosenbloom
Apple (AAPL) shares broke Thursday above a key price level, and we’re carefully watching what happens next.
Here’s the breakout and the Daily Chart levels:
Buyers held support after a steep pullback (retracement) toward the $142.00 price level.
Note the yellow highlight and the positive divergence – with declining sell/bear volume.
That combination (in an ongoing uptrend) is often a precursor to a bounce and it sets up a support/rally play from a deeper (higher timeframe) retracement.
Price broke above the overlap (crossover) of the 20 and 50 day EMAs into $146.00.
Bullish traders may attempt to add to existing positions (bought off support) or put on a new buy position on the breakout.
Stops will be triggered beneath this pivot and certainly beneath $142 and $140.
Unless price turns and trades back beneath the EMAs – triggering a Bull Trap and failed breakout – we’re watching for additional upside action toward the $155 high in the near future.
Let’s see if that bullish pathway occurs in the ongoing bull market.
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Corey Rosenbloom, CMT
Afraid to Trade.com
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