$AAPL Melt up or Melt down
It looks like they are coming after the generals next, i.e. large cap FATMANG names in this "pull back" or bear market (whichever you prefer).
Technically speaking although Apple has been following this upward channel beautifully ( personally I really love this chart from TA perspective), IT IS CONCERNING for the bulls with a close below the 30 week MA.
However, this isn't the first this has happened (shaded box) and what followed was a face ripper +13% rally.
There are a few points I'm watching out for and possible trade ideas / scenarios :
Bear Cases
- Watching for a break lower to the bottom of the channel 155 zone where one would expect a bounce , or a break down on volume as an important inflection point.
- Any break down of channel would imply 140 zone next line of support, and would be likely we get a retest bounce in which I'd be looking for another short.
- Price could fake out altogether as in March and a fake break down followed by a bull rally could ensue, any shorts/ puts I'd be using a tight stop, and is important to play price level by price level
Bull Cases
-Similar to March's action, this could be another fake break down and 155 zone would act as support creating a rally higher
- A trade idea long I'd be watching 175 zone resistance (triangle dotted line) and possible rejection there.
- Any breakout of triangle, a retest bounce would imply new ATH's and confirm "melt up"
- Also as opposed to the bear case we could still consolidate and "fill" out the triangle and bit more before breaking higher or lower
It's interesting IMO that we didn't see a lot of volume last week, perhaps we get it this week ?
Regardless I would not be long here until we either regain the 30wk MA or support bounce is confirmed.
Cheers !
Technically speaking although Apple has been following this upward channel beautifully ( personally I really love this chart from TA perspective), IT IS CONCERNING for the bulls with a close below the 30 week MA.
However, this isn't the first this has happened (shaded box) and what followed was a face ripper +13% rally.
There are a few points I'm watching out for and possible trade ideas / scenarios :
Bear Cases
- Watching for a break lower to the bottom of the channel 155 zone where one would expect a bounce , or a break down on volume as an important inflection point.
- Any break down of channel would imply 140 zone next line of support, and would be likely we get a retest bounce in which I'd be looking for another short.
- Price could fake out altogether as in March and a fake break down followed by a bull rally could ensue, any shorts/ puts I'd be using a tight stop, and is important to play price level by price level
Bull Cases
-Similar to March's action, this could be another fake break down and 155 zone would act as support creating a rally higher
- A trade idea long I'd be watching 175 zone resistance (triangle dotted line) and possible rejection there.
- Any breakout of triangle, a retest bounce would imply new ATH's and confirm "melt up"
- Also as opposed to the bear case we could still consolidate and "fill" out the triangle and bit more before breaking higher or lower
It's interesting IMO that we didn't see a lot of volume last week, perhaps we get it this week ?
Regardless I would not be long here until we either regain the 30wk MA or support bounce is confirmed.
Cheers !
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.