APPLE: STOCK MARKET ANALYSIS
Greetings everyone, I hope your first trading day of the week went well.
This analysis will be a detailed explanation of what we can predict will happen to AAPL.
1.) Structure:
-Ascending channel (pink line is being used as diagonal support.)
-Confirmed double bottom at 132$
-Clean break of the resistance at 138$
2.) EMA 20/50/100/200:
-Strong support from E50/E100, you can back test and see if they are reliable and they have been.
-No where near forming a Cross of Death, inducing we would be in a downtrend.
-Golden Cross formed 11 months ago which was the last time Apple has touched the 200 EMA proving we are in a strong bull run.
3.) RSI/Hidden Divergence:
-Bounced off 50 region on the daily chart.
-Plenty of space before being over sold.
-Bullish Divergence has formed between Feb 3rd and Feb 8th, with a mixture of this and a strong bounce off the 20 EMA gives a very bullish scenario.
4.) Fibonacci retracement:
-Bounce from 129 has formed multiple times and had just occurred again.
-135 Fib seems very weak and will be easily broken through.
5.) Conclusion:
I can not stress this enough but if the FAANG (Facebook, Amazon, Apple, Netflix, Google) dropped 10% after an amazing quarterly earning it has to be an overreaction to something, or retail sellers just selling at the all time high. Apple showed great strength in their quarterly earning by increasing their revenue by 20% and beating quarterly earnings by 18%. To me this is a steal. As traders when golden opportunities happen like this where we can take advantage of a great stock dropping, we can easily have a minimum 3 month option contract to hold this position to give us some great profit.
From a 1 being a sell, to a 10 being a buy, I give Apple an 8.7/10. The reason why not a 9 or 10 has to do with it not touching the 100 day EMA. Other than that, this is a very strong buy we can all take advantage of.
~Wake me when we sell, Master Chef out.
This analysis will be a detailed explanation of what we can predict will happen to AAPL.
1.) Structure:
-Ascending channel (pink line is being used as diagonal support.)
-Confirmed double bottom at 132$
-Clean break of the resistance at 138$
2.) EMA 20/50/100/200:
-Strong support from E50/E100, you can back test and see if they are reliable and they have been.
-No where near forming a Cross of Death, inducing we would be in a downtrend.
-Golden Cross formed 11 months ago which was the last time Apple has touched the 200 EMA proving we are in a strong bull run.
3.) RSI/Hidden Divergence:
-Bounced off 50 region on the daily chart.
-Plenty of space before being over sold.
-Bullish Divergence has formed between Feb 3rd and Feb 8th, with a mixture of this and a strong bounce off the 20 EMA gives a very bullish scenario.
4.) Fibonacci retracement:
-Bounce from 129 has formed multiple times and had just occurred again.
-135 Fib seems very weak and will be easily broken through.
5.) Conclusion:
I can not stress this enough but if the FAANG (Facebook, Amazon, Apple, Netflix, Google) dropped 10% after an amazing quarterly earning it has to be an overreaction to something, or retail sellers just selling at the all time high. Apple showed great strength in their quarterly earning by increasing their revenue by 20% and beating quarterly earnings by 18%. To me this is a steal. As traders when golden opportunities happen like this where we can take advantage of a great stock dropping, we can easily have a minimum 3 month option contract to hold this position to give us some great profit.
From a 1 being a sell, to a 10 being a buy, I give Apple an 8.7/10. The reason why not a 9 or 10 has to do with it not touching the 100 day EMA. Other than that, this is a very strong buy we can all take advantage of.
~Wake me when we sell, Master Chef out.
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