AAPL
Adjustments
As a technical analyst, you cannot marry your ideas and must be able to adjust with the market.
It’s been a great year to short so far but if you married your ideas and did not adjust, there have been moments this year even the bears got beat up.
AAPL provides great example.
AAPL Weekly chart analysis
1) The Rising Wedge-
During its Uptrend, AAPL formed a Rising Wedge pattern Between Aug.’20 – Nov.’21.
The Wedged found resistance at 155.
2) The breakout.
Price breaks out of Rising Wedge & resistance of 155.
3) The High
After breakout, price continues north to all-time high of 181.
Price finds resistance at 181 and falls back down to 155.
Previous resistance of 155 turned to Support and price bounces towards resistance of 181.
The bounce off support failed to break high of 181 and falls short. Price shot back down.
Price is now moving side-ways after breaking out from Wedge but still has support of 155.
4) The Breakdown (False).
Price failed to break high of 181 and started to move side-ways after breakout. It then proceeded to breaks below support of 155.
It has now fell below the breakout level of the Rising Wedge. This is a signal of possible trend reversal and possible entry to trade short.
5) False breakdown confirmed.
Just when we thought the market gave us an entry to short, price bounces back up and back into the previous range.
We are now back up above the breakout level from the Rising Wedge and the market might be giving us a chance to go long again.
6) Unable to make higher high.
After price bounce back into range it tried to make a move north, but price was unable to make a higher high.
Price has now made a series of lower highs into support level at 155. We now have the formation of a Descending Triangle.
7) Breakdown
Price is in a Descending triangle. It was unable to bounce off the 50ema & support level at 155.
Price proceeds to breakdown from the Descending triangle. This signals a possible trend reversal and entry to short.
The breakdown of the Descending triangle confirms the Distribution stage.
8) The Pullback
The last time we thought we had an entry to short, the market bounced back into the previous range on us and marked the breakdown as “false” (see #4).
This time price has pulled back to 155 level and has rejected and bounced down and off it. Price is looking to turn previous support of 155 into resistance.
During this time price has also bounced off the 50 ema looking to turn this support level into resistance as well.
AAPL has taken everyone on a ride the past yr whether you were trying to short or go long.
We saw AAPL breakout of a Rising Wedge, giving all the bulls hope AAPL was going to continue to higher prices.
Then we saw price double top and breakdown in May ’22. So many Bears entered trade short.
The false breakdown wiped the bears out and gave the bulls new hope after AAPL went green for 8 weeks and back above the Rising Wedge’s breakout point.
Price the fails to make a higher high and formed a descending triangle and breaks down again.
What a ride!
You can marry your ideas or get stuck on chart patterns. Its all about adjusting and letting the market take you where it wants to go.
The bulls held on strong but its over. There has been bull blood all over the place in 2022 and it’s about to get worse. AAPL to join the slaughterhouse.
Entering trade short.
Entry: 134.51
Stoploss: 159.08
Target: 109.50
Adjustments
As a technical analyst, you cannot marry your ideas and must be able to adjust with the market.
It’s been a great year to short so far but if you married your ideas and did not adjust, there have been moments this year even the bears got beat up.
AAPL provides great example.
AAPL Weekly chart analysis
1) The Rising Wedge-
During its Uptrend, AAPL formed a Rising Wedge pattern Between Aug.’20 – Nov.’21.
The Wedged found resistance at 155.
2) The breakout.
Price breaks out of Rising Wedge & resistance of 155.
3) The High
After breakout, price continues north to all-time high of 181.
Price finds resistance at 181 and falls back down to 155.
Previous resistance of 155 turned to Support and price bounces towards resistance of 181.
The bounce off support failed to break high of 181 and falls short. Price shot back down.
Price is now moving side-ways after breaking out from Wedge but still has support of 155.
4) The Breakdown (False).
Price failed to break high of 181 and started to move side-ways after breakout. It then proceeded to breaks below support of 155.
It has now fell below the breakout level of the Rising Wedge. This is a signal of possible trend reversal and possible entry to trade short.
5) False breakdown confirmed.
Just when we thought the market gave us an entry to short, price bounces back up and back into the previous range.
We are now back up above the breakout level from the Rising Wedge and the market might be giving us a chance to go long again.
6) Unable to make higher high.
After price bounce back into range it tried to make a move north, but price was unable to make a higher high.
Price has now made a series of lower highs into support level at 155. We now have the formation of a Descending Triangle.
7) Breakdown
Price is in a Descending triangle. It was unable to bounce off the 50ema & support level at 155.
Price proceeds to breakdown from the Descending triangle. This signals a possible trend reversal and entry to short.
The breakdown of the Descending triangle confirms the Distribution stage.
8) The Pullback
The last time we thought we had an entry to short, the market bounced back into the previous range on us and marked the breakdown as “false” (see #4).
This time price has pulled back to 155 level and has rejected and bounced down and off it. Price is looking to turn previous support of 155 into resistance.
During this time price has also bounced off the 50 ema looking to turn this support level into resistance as well.
AAPL has taken everyone on a ride the past yr whether you were trying to short or go long.
We saw AAPL breakout of a Rising Wedge, giving all the bulls hope AAPL was going to continue to higher prices.
Then we saw price double top and breakdown in May ’22. So many Bears entered trade short.
The false breakdown wiped the bears out and gave the bulls new hope after AAPL went green for 8 weeks and back above the Rising Wedge’s breakout point.
Price the fails to make a higher high and formed a descending triangle and breaks down again.
What a ride!
You can marry your ideas or get stuck on chart patterns. Its all about adjusting and letting the market take you where it wants to go.
The bulls held on strong but its over. There has been bull blood all over the place in 2022 and it’s about to get worse. AAPL to join the slaughterhouse.
Entering trade short.
Entry: 134.51
Stoploss: 159.08
Target: 109.50