After my last look at Apple, which was not very long ago, I concluded that I wanted to buy around the 138-140 range. Well, that ship might have sailed, or at least it seems that way. One thing that you have to do when trading is be open to changing plans. I'm not saying that I will not buy in the previously mentioned range, but the current chart seems to indicate that a short term (and very tradeable) bottom my form above my target entry range. Here's the daily chart:
I may have drawn the current price box a little too tight and I would not be that surprised to see the price fall back to the 145-150 level. The key is to let the market make the bottom. How will we know if the market makes a short term bottom? Watch the support levels and the BB Width. If AAPL bounces off a support level, lets say 155, and the BB Width hits a new low and levels off, then we know that a bottom is likely occuring.
I may have drawn the current price box a little too tight and I would not be that surprised to see the price fall back to the 145-150 level. The key is to let the market make the bottom. How will we know if the market makes a short term bottom? Watch the support levels and the BB Width. If AAPL bounces off a support level, lets say 155, and the BB Width hits a new low and levels off, then we know that a bottom is likely occuring. I will look to buy while the BB Width is low, before it breaks out to new short term highs. This helps you get in the trade while the stock is still consolidating which allows a better risk to reward trade because you're getting into the stock prior to the next big advance in the stock. And what if the stock fails to advance to new highs? Dump it if it falls below the prior bottom.
It's impossible to say how much is left in this stock because it seems to be a very crowded trade, but don't underestimate a market leader like Apple in a short term bull market (which we are currently in).
Have a good day.
TLT
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