Friday, January 04, 2013
10:45 AAPL Update - LIS for bulls is 522 assuming this is a traditional low to high fib placement rather than an extension.
Caution, bearish island reversal has formed on AAPL chart. If bulls don't defend HWB, AAPL is doomed to retest support once again.
Posted by Jamie at 1/04/2013 10:21:00 AM
Thursday, January 03, 2013
Last week AAPL broke the micro short with a short squeeze. Yesterday we gapped up to previous resistance (yellow line). Now we are consolidating the move. I wouldn't be surprised if we fill yesterday's gap completely and bounce. There is a small gap around $569 which could provide resistance as AAPL makes its way to our target of $605.00
Posted by Jamie at 1/03/2013 12:24:00 PM
Friday, December 21, 2012
Thursday, December 20, 2012
Tuesday, December 18, 2012
My prediction in my last post came true. The micro short on the daily chart (left) traded to target. This resulted in a slightly lower low with positive divergence of the RSI foreshadowing a short-term reversal.
How to take advantage of a potential.reversal? Move to lower timeframe. Look for:
- Positive divergence of RSI to lower price.
- Wait for price to take out previous swing high.
- Wait for base to form - at least two relatively equal points form a base. In this case AAPL touched 517 twice before retracing.
- Buy the ambush.
However, this still a counter-trend trade to take us back to the bigger setup at $605 which is an ambush short.
Posted by Jamie at 12/18/2012 01:02:00 PM