Lets get to this bag.
If these support levels hold strong i see APPL going back up to test the 145 all time high sometime during late February.
If you like this analysis please like and follow. This will encourage me to do more.
Good luck trading.
- APPL falls from all time price of 145 after the release of a "great" earnings report.
I consider myself a swing trader and typically hold option positions anywhere from 1 to 60 days max.
Most of my option plays have an expiration date of no less then 30 days from the time open the position.
- I want to draw your attention to the yellow highlighted circles on the chart. Circle 1 indicates the support forming between the prices of 126 and 129. I expect price to come down to test these areas and bounce off the upward "black" trendline as my first signal of a buy confirmation.
- In the event that the "black" trendline has been compromised and does not hold the "blue" Support line has been tested several times this month and respectively held its own in support. A bounce off of the "blue" support line acts as my 2nd signal of a buy confirmation.
- As the 3rd signal of a buy confirmation see the highlighted yellow circle towards the bottom. This is the RSI indicator. It is clearly in the oversold area which means this could be a text book buy. I don't necessarily see any divergence between the price and the RSI which would of been a strong 4th confirmation.
If these support levels hold strong i see APPL going back up to test the 145 all time high sometime during late February.
If you like this analysis please like and follow. This will encourage me to do more.
Good luck trading.