Apple Inc

Important points you need to know about Apple..!

821
Recently, everyone call October "Shocktober" because of what happened in the financial markets!
One of the most important ones was Microsoft surpassing Apple and becoming the biggest company in the world with a 2.48 trillion dollars market cap!


In these charts, you can see the most important support (green lines) and resistance (red lines) to watch in the coming days!

Multi-Timeframe Analysis:

Hourly Chart: Broadening pattern, (Neutral)

Daily Chart: at the lower border of a pitchfork, possible price action!


Weekly Chart: Doji (Neutral)


Monthly Chart: Pullback to the upper border of the triangle and bounce back (Neutral)


Conclusion:
Technical analysis of Apple is Neutral. However, there is another important factor that could cause this in the next 4-8 weeks!
and that is AAPL'ss option trading!
AAPL has the most open interest with a 7.45 million contract, put/call 0.74, and the max pain for the next 8 weeks is between 145 and 150 in most weeks 147..!

Education:

But what is Max Pain?
Max pain, or the max pain price, is the strike price with the most open contract puts and calls and the price at which the stock would cause financial losses for the largest number of option holders at expiration.
The Maximum Pain theory states that an option's price will gravitate towards a max pain price, in some cases equal to the strike price for an option, which causes the maximum number of options to expire worthlessly.
Max pain calculation involves the summation of the dollar values of outstanding put and call options for each in-the-money strike price.

Financial Market is like Onion, it has layers..!(Mosh)

I change the original quote:(Donkey, Shrek 2001)
Shrek is right – ogres and people are like onions, we have layers. Those layers define who we are, define our values, and explain why we do what we do. But, often, most people see the surface, the outer layer, and don't look further.


Reference Article:
https://www.investopedia.com/terms/m/maxpain.asp



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.