AAPL: welcome to post-split - should i buy now ?
AAPL opens tomorrow (Aug 31) to the new post-split price, based on Friday's closing, would be around $124.81 -- maybe a gap up or down from there. and what a run in the last 3 weeks!! the excitement around the split caused the stock to breach a channel that's been established in early April - and accelerate higher, until the last week where we saw some profit taking. but still even this didn't cause a significant drop in the price - my optimistic expectations were to split at $460 (post-split = $115), with an upper range of $125 - at one point in time we hit a high of $515 but that was not sustained.
i hope some fellow TV traders managed to capture some of that awesome run. This one was a new BP for me :)
what do we expect now that the split-run is over?
to answer that let's zoom-in to the 2HR chart - we see volume going into supply mode, however the price kept in a range / channel - we also see momentum going into negative zone - but the sentiment is almost at a balance (zero) - this supports a possible scenario of consolidation - and it may take some time for AAPL to build some positive momentum again
please stay safe, and do your own research before trading - please do not take any one's advice (including me) about where to put your money.
Quick Note: if you follow my posts, you may see i use the Ultimate Trader Oscillator (UTO) in my trading set up - it is based on "bar scoring" and is published here in TV - if anyone is interested to learn more about how the bar scoring technique works and why i started using it in my trading vs classic indicators (like RSI and ADX) pls let me know - i may post some tutorials if there's demand..
i hope some fellow TV traders managed to capture some of that awesome run. This one was a new BP for me :)
what do we expect now that the split-run is over?
to answer that let's zoom-in to the 2HR chart - we see volume going into supply mode, however the price kept in a range / channel - we also see momentum going into negative zone - but the sentiment is almost at a balance (zero) - this supports a possible scenario of consolidation - and it may take some time for AAPL to build some positive momentum again
- - no one can tell how long, cause now with the stock price at a more affordable level (to both retail traders and some fund managers, also option prices are attractive), demand can come in at any time.
- - AAPL continues to be a strong tech player from fundamentals standpoint - the catalysts of work/learn-from-home and upcoming 5G + services are still all in play. so AAPL continues to be considered a strong portfolio component for both major & retail investors.
- - but can it grow beyond 2T ? i don't see a reason why it can't -- did we believe when it hit the 1T that it will hit 2?
- - The big question, should i buy (now)? i would wait for the next breakout above the $125 -- and that's one scenario, the other scenario, given the long term trend and expected growth, is to start scaling in if the price goes down - the $110 to $115 ($440 to $460 pre-split) held well in the past so expect support there if some distribution takes place - i'm leaning more towards an accumulation in the next 2-3 weeks and a move up.
- - there's a remote possibility to come back and fill the earnings gap - which takes the stock all the way down to $95 - remote possibility - and if that happens - i will definitely buy more
please stay safe, and do your own research before trading - please do not take any one's advice (including me) about where to put your money.
Quick Note: if you follow my posts, you may see i use the Ultimate Trader Oscillator (UTO) in my trading set up - it is based on "bar scoring" and is published here in TV - if anyone is interested to learn more about how the bar scoring technique works and why i started using it in my trading vs classic indicators (like RSI and ADX) pls let me know - i may post some tutorials if there's demand..
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