Well we initially had potential double top but never played out or confirmed because the neckline and 20EMA was never broken. We threw a hammer reversal yesterday and today we gaped up an barely closed above our resistance.
My bullish trigger is little above today’s upper wick. And yes that’s is a very tight trigger but I am very bullish on $AAPL.
Safer trigger = wait until it closes above $690.
Volume came back last two days adding onto its bullishness.
Targets are presented by Fibonacci expansion.
Target 1 = $720
Target 2 = $748
I do think $700 we will slow us down with possible continuation pattern such as a pennant..
Trading lanes have been awesome and on point!
You can see that the middle trading lane support has held and reversed after throwing a bullish hammer yesterday.
It is no coincidence that upper trading lane resistance is in sync with Fib. expansion resistance. This just confirms that $720 price point is crucial in this bullish trade.
Bollinger Bands are squeezing so the break out play will be a fun ride!
This is why consolidation is a good thing so it gives chance for indicators to rest/reset.
DMI = Green line has been rested well and ready to move again upwards.
ADX (light blue) = is rested and reset and ready to move again. This has not turned up yet so it actually suggests that we haven’t found solid momentum or strength in this bullish move
Stoch (FAST SETTING) = Very well rested/reset and ready to move upwards supporting the bullish move.
* CONCLUSION – Despite of huge moves today on the INDEXES, it didn’t seem like $AAPL moved much but i think the gap and the bullish hammer at support tell us sentiment where its headed. 20EMA has NOT been broken, market is bullish as a whole and so is the $AAPL. Only concern I have is that DOW JONES moved way way too fast today hitting the major pivot just at the close. If we start to tank tomorrow on the INDEXES, it may effect $AAPL’s move..
I am not saying we are going to jump like 200 points next few months but what I am saying is that we see some similarities in formation before it took off.
Similarities in on all indicators and as well as candle formation. Obviously today’s gap up wan’t as huge as back in late January but the indicators are showing the formation when $AAPL continue its trend after rest.
9/16 Sunday – Bearish Divergence Warning
Ok so I got triggered bullish last Friday which it looked great as we gaped up that morning.
Initially I thought the gap was a continuation gap and that’s not yet confirmed and matter of fact it does not look like it’s going to play out that way for now. As you can see we had some bearish pressure at the end of the day on Friday.
Actually my stop was little bit further out but I tightened it today upon discovering the bearish divergence on my indicators.
Ok so here you can see on my candle chart up top, higher highs three times ultimate high last Friday with high bearish pressure at the end of the day.
Stoch, RSI, MACD not following. they are making LOWER LOWS.
This is what we call Bearish Divergence.
The reason I said “Slight” bearish divergence is the fact that we are not seeing much divergence on MACD (Moving Average Convergence Divergence). More on Stoch and RSI so I am not putting heavy weight on this thing.
However looking at $AAPL that we are at all time high, with selling pressure at the end of the day on Friday and now with the bearish divergence in the picture. (not mentioning Dow Jones is also at its pivot with a shooting star early reversal signal)
It’s a warning but definitely nothing confirmed yet.
9/17 Monday – Declining volume**
I probably going to get stopped out tomorrow morning but I am not going to wait around until this thing tanks.
Last 4 trading days, we had almost $40 move! That’s a huge move but look at the volume. It’s not supporting and not only that you can see it in the candle formations. Lot of hesitations and with these spinning tops and doji ain’t doing it for me.
Also as I have mentioned on my previous update that we have a bearish divergence in the picture. So you put all that together and you can sudden crash.. Nothing confirmed but I am just talking about sentiment and early signals.
9/18 Tuesday – I am still in it
Wow~ absolutely amazing.. we are still chugging along while having these declining volume…
I slightly moved up my stop, just below today’s lower wick. Even with these itty bitty moves I gained 20% on my call option just in few days. Anyways. I really want to see something solid tomorrow. Good volume, good candle, good move, we need that if we want to see this thing hitting my target of $720 either this week or next. But I am still not totally convinced that if we continue like this with these tiny candles with declining volume, I can’t help to think that its gonna do something DRAMATIC (lol) hopefully not. Anyway at the end of the day gain is gain and profit is profit.
9/19 Wednesday – I can’t believe I’m still in it
Wow I’ve been moving up my stop up to the lower wick of the close everyday last several days and I’m still in it! Fascinating if you ask me because we have decreasing volume while the stock is just so slightly moving upwards..
Good news is that oscillators are starting to support this move now and coming out of the initial divergence signal we had late last week. But I am still not convinced that this thing is going to continue to my target without pulling back pretty hard. But hey if we continue bullish tomorrow, I am happy as long as I make money! =)