Apple IncLong
AAPL: Momentum Brewing – What's Next?
▋Observation & Meanings:
▪The downside breakout from the ranging zone failed, and the price even took out the high of the range, reversing into an uptrend, followed by minor congestion.
▪After reversing the trend, the bulls showed their further intent by breaking above the congestion high.
▋What to expect next?
▪The price has retested the high of the congestion zone, and this level should hold if the bulls intend to maintain momentum.
▋The big 3 zones:
▪The continuation zone:
▫ The next major resistance will be level X.
▫ Although the resistance is significant, this is the third attempt, and with plenty of fuel (position) accumulated below during this period, a breakout is likely.
▫ Additionally, an ascending triangle pattern has formed on the 4-hour chart, reinforcing the potential for an upward breakout.
▫ If the key resistance at X is broken, a short squeeze could occur as sellers are forced to cover their positions, driving the price to the next level.
▪The unclear zone:
▫ If the price falls back into the congestion zone, wait for clearer signals before making a move.
▪The defending zone:
▫ If the price breaks below the defending level, the low of the congestion, the trend will likely shift back to the downside.
▋Don’t predict the price, trade the price.
▋Note: These zones adjust in real time based on price movements and evolving market conditions.
▋Not Financial Advice
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
▪The downside breakout from the ranging zone failed, and the price even took out the high of the range, reversing into an uptrend, followed by minor congestion.
▪After reversing the trend, the bulls showed their further intent by breaking above the congestion high.
▋What to expect next?
▪The price has retested the high of the congestion zone, and this level should hold if the bulls intend to maintain momentum.
▋The big 3 zones:
▪The continuation zone:
▫ The next major resistance will be level X.
▫ Although the resistance is significant, this is the third attempt, and with plenty of fuel (position) accumulated below during this period, a breakout is likely.
▫ Additionally, an ascending triangle pattern has formed on the 4-hour chart, reinforcing the potential for an upward breakout.
▫ If the key resistance at X is broken, a short squeeze could occur as sellers are forced to cover their positions, driving the price to the next level.
▪The unclear zone:
▫ If the price falls back into the congestion zone, wait for clearer signals before making a move.
▪The defending zone:
▫ If the price breaks below the defending level, the low of the congestion, the trend will likely shift back to the downside.
▋Don’t predict the price, trade the price.
▋Note: These zones adjust in real time based on price movements and evolving market conditions.
▋Not Financial Advice
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
Note
▪The price did surpass the key resistance at level X as expected, reaching a new all-time high in one strong move. While level X held as support by the close, the ultra-high volume and sharp price action show the strength of the resistance overhead.
▪If the market doesn't open with a significant gap down or drop sharply, trapping bulls above, the defending level stays the same. However, if it does, it could indicate a false breakout.
▪Personal thoughts: When a breakout level becomes too obvious to ignore, the market often tries to "shake out" traders. That’s why having a meaningful defense line is important.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.