I have found an interesting AB=CD pattern that is a great opportunity for anyone in Stocks or Options to make some money on the ride down.
Apple has been on a strong bull market for quite some time. Now I am not saying that this is the end. Far from it. This idea is just to make a quick profit (if it works).
Here is the roadmap of the idea. I see an AB=CD pattern (orange arrows) that has a 1.618 BC and 1.414 AB confluence. The confluence of the Fib ratios at pattern completion makes this a highly probable trade. Now, the other important thing is those red solid lines. This shows that Apple has been making higher lows, but it looks like the Bulls are temporarily becoming exhausted as the distance between each higher low is getting less. This could mean we will have a retracement which will be the target. Where? Well that depends on YOUR trading plan. But for me, I would like to see a 0.382 retracement (if the market gives it to me). The great part of the 0.382 retracement is that it is spot-on structural resistance (now support)!!!
I will wait until I see a new structure low (breaking of the last red solid line) and go short towards my target. Now I doubt that we will reach Target 2 since the Bull trend is quite strong (look on the daily chart). But just in case we do have a break of structural support at 120.17, we can see a possible continuation down to 114.47
For anyone who is in options, this may be of great interest for you to go Long on Put Calls or start Buying Put Spread or Selling Call Spreads all the way down.
Trade Wisely, Trade Responsibly.
Apple has been on a strong bull market for quite some time. Now I am not saying that this is the end. Far from it. This idea is just to make a quick profit (if it works).
Here is the roadmap of the idea. I see an AB=CD pattern (orange arrows) that has a 1.618 BC and 1.414 AB confluence. The confluence of the Fib ratios at pattern completion makes this a highly probable trade. Now, the other important thing is those red solid lines. This shows that Apple has been making higher lows, but it looks like the Bulls are temporarily becoming exhausted as the distance between each higher low is getting less. This could mean we will have a retracement which will be the target. Where? Well that depends on YOUR trading plan. But for me, I would like to see a 0.382 retracement (if the market gives it to me). The great part of the 0.382 retracement is that it is spot-on structural resistance (now support)!!!
I will wait until I see a new structure low (breaking of the last red solid line) and go short towards my target. Now I doubt that we will reach Target 2 since the Bull trend is quite strong (look on the daily chart). But just in case we do have a break of structural support at 120.17, we can see a possible continuation down to 114.47
For anyone who is in options, this may be of great interest for you to go Long on Put Calls or start Buying Put Spread or Selling Call Spreads all the way down.
Trade Wisely, Trade Responsibly.