Hey everyone.
You may have noticed before that we have been having this price channel for the last few months, basically since when corona hit everyone. The support and resistance lines have proved to work out amazingly well. But to my surprise, the support line was broken so I was not sure about the stock anymore. However, the earnings report was good, so it looks like we had a fake channel penetration.
Right now there are 2 factors for a short-term correction:
1) The price hit the resistance line. Unlike the support line, it has not been broken a single time.
p.s - if the price passes the line, however it may go up for the channel height. Anyway, even if it happens (i find it unlikely) you better wait for a re-test and then enter long.
2) It is overbought on RSI. For clarity I highlighted a couple of times when it happened (when the price hit the channel and was as well overbought), so we may be seeing a correction.
Just to make it clear, I am still bullish on apple, but you may wanna wait before you buy it.
You may have noticed before that we have been having this price channel for the last few months, basically since when corona hit everyone. The support and resistance lines have proved to work out amazingly well. But to my surprise, the support line was broken so I was not sure about the stock anymore. However, the earnings report was good, so it looks like we had a fake channel penetration.
Right now there are 2 factors for a short-term correction:
1) The price hit the resistance line. Unlike the support line, it has not been broken a single time.
p.s - if the price passes the line, however it may go up for the channel height. Anyway, even if it happens (i find it unlikely) you better wait for a re-test and then enter long.
2) It is overbought on RSI. For clarity I highlighted a couple of times when it happened (when the price hit the channel and was as well overbought), so we may be seeing a correction.
Just to make it clear, I am still bullish on apple, but you may wanna wait before you buy it.