[EN] APPLE big crossroads on November 2 // GaliortiTrading
In the 1-month chart
AAPL
has lost its 10-session average, a chart widely followed by large traders, which may condition a bearish momentum in the medium term.
1 Month
Since 2005
AAPL
has been in a rising channel with an accelerating slope. In fact, in the last 10 years it is developing an ascending wedge. The final loss of the 10-session average on monthly chart could be a powerful bearish force generator that would allow to break strongly its lower portion. The objective is to develop a corrective counter-trend with a target at the floor of the very long-term channel (around $130).
1 W
The weekly chart shows that the price has been dominated by a bearish trend line since early August. It is likely that these next two weeks, the downward correction will persist until November 2 when the company publishes results. We would be talking about an environment around $159. There is a great support there:
- EMA 100 sessions
- floor of the long term ascending wedge
- proximity of a strong liquidity zone
At this level ($159) the rebound or its perforation will be of great violence and with great volume, all conditioned by the company's business results:
- if they were read positively by the market:
AAPL
would rebound with great force (closing of shorts + strong oversold). We would see again historical highs with a target in the upper zone of the rising wedge (around $270-300).
- If these were read negatively by the market: this relevant support would be lost and the
AAPL
would send us a great medium-term bearish signal with a target at the floor of the 2005 bullish channel (around $130). If a downward opening gap appears, leaving the support of the rising wedge ($159) above, it would give us a great bearish trading window. Stop loss: above the gap. Target: floor of the long-term channel ($130).
1 D
If we extend the chart to a 1-day period, we will observe that the current short-term bearish movement has its origin in a gap that did not close on August 4th. The TSI indicator at the present time has given a bearish signal, so it is highly probable that the falls will continue in the next few days.
We must remember that there is a large liquidity zone around $150-155 that could greatly accelerate the rises or falls. We have to be very attentive to November 2nd (results) because it will generate a great opportunity to buy/sell in the medium term!.
Pablo G.
AAPL
has lost its 10-session average, a chart widely followed by large traders, which may condition a bearish momentum in the medium term.
Since 2005
AAPL
has been in a rising channel with an accelerating slope. In fact, in the last 10 years it is developing an ascending wedge. The final loss of the 10-session average on monthly chart could be a powerful bearish force generator that would allow to break strongly its lower portion. The objective is to develop a corrective counter-trend with a target at the floor of the very long-term channel (around $130).
The weekly chart shows that the price has been dominated by a bearish trend line since early August. It is likely that these next two weeks, the downward correction will persist until November 2 when the company publishes results. We would be talking about an environment around $159. There is a great support there:
- EMA 100 sessions
- floor of the long term ascending wedge
- proximity of a strong liquidity zone
At this level ($159) the rebound or its perforation will be of great violence and with great volume, all conditioned by the company's business results:
- if they were read positively by the market:
AAPL
would rebound with great force (closing of shorts + strong oversold). We would see again historical highs with a target in the upper zone of the rising wedge (around $270-300). - If these were read negatively by the market: this relevant support would be lost and the
AAPL
would send us a great medium-term bearish signal with a target at the floor of the 2005 bullish channel (around $130). If a downward opening gap appears, leaving the support of the rising wedge ($159) above, it would give us a great bearish trading window. Stop loss: above the gap. Target: floor of the long-term channel ($130).
If we extend the chart to a 1-day period, we will observe that the current short-term bearish movement has its origin in a gap that did not close on August 4th. The TSI indicator at the present time has given a bearish signal, so it is highly probable that the falls will continue in the next few days.
We must remember that there is a large liquidity zone around $150-155 that could greatly accelerate the rises or falls. We have to be very attentive to November 2nd (results) because it will generate a great opportunity to buy/sell in the medium term!.
Pablo G.