AAPL is offering some excellent risk : reward to the upside in the 160-170 price zone for a longer-term (daily/weekly) trade. Closing the week above the weekly bottom of the Ichimoku cloud and 100 SMA should set up for a potential short squeeze following a weekly gap that opened below both. an entry either on a pullback as pictured around 168, or wait for a daily close over the weekly 100sma around 171 would both work. There's a delicious gap between ~169.50 - 174 from April of 2018, and in the last 2 weeks, this zone has been passed through relatively easily (similarly to what we saw in April). Finally, bullish divergence on the RSI on the daily and potentially on the weekly as well. Liberal bullish targets would be the weekly or the daily 50 sma, or the down trendline from ATH, whichever is hit first. A more conservative target would be just below 185, which acted as previous resistance and then support before the run in late summer of this year. A daily close or gap below the lows from May likely induces some selling, at least intra-day, so if you don't want to own AAPL long-term, a stop loss below 160 may work, but realize that the path higher could include a test below and close above the weekly 100 sma /Ichimoku cloud. Note the orange weekly Chinkou Span/ lagging line on the ichimoku system appears to be bouncing off the weekly 50 sma.. Potentially bullish confirmation that this line will act as support in the near future once again. So starting a position anywhere between 150-180 in longer-term accounts seems like a reasonable plan.
If I already owned AAPL, I'd still consider adding anywhere in the 160's. If we do see the market hold and we don't get a weekly close below Mondays daily close at 169.60, it's possible it is never tested again. The monthly chart suggests we either hold around here or could be headed for 135-140. This also means a failed attempt to squeeze higher and a weekly close below in the next few days could set up a very nice short-sided trade.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.