1. 1-Hour Timeframe
* Current Price: $255.28
* Resistance Levels:
* $257.30 (recent high and breakout level)
* $260.00 (psychological level and potential target)
* Support Levels:
* $251.97 (previous breakout zone, now acting as support)
* $249.79 (secondary key support level)
2. Key Observations
A. Trend and Momentum:
* AAPL recently broke out of a descending trendline with strong momentum, signaling bullish strength.
* Price action is currently consolidating just below the resistance at $257.30, which will be critical for determining the next move.
B. Stochastic Oscillator:
* The Stochastic is nearing the overbought zone, suggesting that the stock might see a slight pullback before making another attempt to move higher.
C. Volume Analysis:
* The breakout was accompanied by a noticeable volume spike, validating the bullish breakout. However, sustained volume will be needed to push past $257.30.
3. Trade Scenarios
Bullish Scenario:
* Entry: Look for consolidation above $255.00, followed by a breakout of $257.30 with strong volume.
* Target: $260.00 (psychological resistance) and potentially higher if momentum sustains.
* Stop-Loss: Below $251.97 to limit downside risk.
Bearish Scenario:
* Entry: If AAPL rejects $257.30 and breaks below $251.97 with increasing volume.
* Target: $249.79 (key support zone) and possibly lower.
* Stop-Loss: Above $257.30.
4. My Thoughts on AAPL’s Direction
Based on the current price action and volume dynamics, I believe AAPL is more likely to test the $257.30 resistance and break higher. The bullish breakout from the descending trendline, combined with strong volume, supports upward momentum. However, with the Stochastic Oscillator nearing overbought levels, we could see a brief pullback before further upside. If $257.30 is broken decisively, $260.00 becomes a realistic short-term target.
5. Key Levels to Watch
* Support: $251.97 and $249.79
* Resistance: $257.30 and $260.00
AAPL is displaying strong bullish momentum, and my bias is tilted toward the upside for tomorrow. Keep an eye on the $257.30 resistance level for a breakout or rejection, as this will dictate the next move.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Please trade responsibly and manage your risk accordingly.
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Scalping Strategy (Options Trading)
Key Observations:
* Resistance Levels:
* $257.50: Highest Gamma Wall, acting as a strong resistance.
* $260.00: Psychological and GEX resistance zone.
* Support Levels:
* $252.50: 3rd Call Wall (moderate support).
* $247.50: HVL (High Volume Level), a major support.
Scalping Call Options:
* Setup: Enter calls if price consolidates above $257.50 and breaks out with volume confirmation.
* Exit Target: $260.00.
* Stop-Loss: Below $257.00 to minimize risk.
Scalping Put Options:
* Setup: Enter puts if the price rejects $257.50 or fails to hold above $257.00.
* Exit Target: $252.50.
* Stop-Loss: Above $258.00.
Long/Short Strategy
Long Strategy:
* Entry: Look for a breakout above $257.50 with strong volume and bullish momentum.
* Target: $260.00 (short-term), $262.50 (extended target).
* Stop-Loss: Below $256.00 to protect against reversal.
Why It Works:
* $257.50 is the highest gamma exposure level, and a breakout above this zone indicates strong bullish sentiment.
Short Strategy:
* Entry: Enter short positions if the price fails to break above $257.50 and shows a rejection (e.g., wicks or bearish engulfing candles).
* Target: $252.50 (3rd Call Wall), $247.50 (HVL).
* Stop-Loss: Above $258.00.
Why It Works:
* Rejection at $257.50 confirms resistance and potential profit-taking, aligning with put gamma levels below $252.50.
Key Tips for Scalping and Options Trading
1. Volume Confirmation:
* Ensure volume spikes during breakouts or rejections for higher probability trades.
2. Timeframe:
* Use the 1-minute or 5-minute chart for scalping execution.
3. Implied Volatility:
* IV is at 24.1%. Look for slightly out-of-the-money (OTM) options with low time decay for scalping.
Conclusion
* Bullish Case: AAPL breaks above $257.50 → Target $260.00 and $262.50.
* Bearish Case: AAPL rejects $257.50 → Target $252.50 and $247.50.
Stay focused on high-probability setups by watching volume, price action near key levels, and momentum indicators like Stochastic Oscillator. Let me know if you'd like a more specific strike price or expiration recommendation! 🚀
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.