$AAP REVERSAL TO THE UPSIDE?

15 окт. 2021 г.

I've been a lot more active in reading other Investors' ideas and really enjoying the community on this platform. I've read a few different trading ideas but the one I linked was one I am closely in agreeance with.

Sentiment: Although my previous thoughts on AAPL reaching the $135 mark before returning to ATH's still carries a strong weight. I have gone over this week's trades, am happy with the profit I have taken from my swing trades, and have positioned myself for a reversal to the upside.

Trend Analysis: As noted in @philipschnapp trading idea, we can see a clear inverse head and shoulders. Although the volume on Oct 14 was not supportive of the large body candle. We can clearly see the buyers stepping in on Oct 13 with a bullish hammer candle. This leads me to believe this move to the upside is supported by the majority. With an inverse head and shoulders, we should also note that they often occur after a recent ATH. Let's also take note of the close above the 50 EMA on Oct 14 as well as the MACD's crossing over the signal line.

Trading Plan: I'll most likely position myself with CALL options and shares of AAPL. I've already entered a small position and will wait for the $145 breakout to place a stronger position.

WARNING: We will continue to keep an eye out for further validation in our trade. There are a few key signals we'll need to watch out for. #1 is the $145 resistance. We'll need to make a clear breakout from it with strong volume. #2 is the overall market sentiment. I believe it has been recently running up due to the Banking sector's earnings coming out soon. Also, taking note of the FED's move on tapering and inflation. Clear guidance is what investors needed and are receiving.