Where is the Apple that we use to know? It is crucial that we stay mentally flexible and trade what the chart is saying. Anything could happen next week. Apple could reverse and make a run for the 50 day as institutions start loading up at bargain prices or if we lose the 200 day we could roll over and start testing the $575 area. Don’t trade your opinions trade the chart and follow the momentum and what happens around key support and resistance areas. If you are wrong get out quickly if you are right let it go until it gets into a key area and look to bank profits. Stay quick on your feet or stay in cash. Currently this is a trader’s market.
- Apple stock is in a downtrend, earnings did not reverse this situation.
- Nine out of ten times that Apple has tested the 200 day sma in the past 4 years it has bounced back above immediately.
- Apple has closed beneath the 5 day ema six out of the past seven days. Above the 5 day ema is a high probability area to initiate shorts.
- the 150 day was support for 4 days but has now turned into the first layer of resistance.
- Apple bounced almost to the penny off the 200 day in the post market after earnings and at $591 on Friday, long positions in the $585-$591 area are high probability spots to enter long for a trade or for investors to add to long term positions.
- For me to consider going long we need to close above the 150 day and 5 day ema and follow through the next day.
- The chart historically is saying we are oversold and due for a bounce.