AAPLL, Trade Between The Lines, Continuation After Confirmation!Hello Traders Investors And Community and welcome to this analysis about the recent events, the current price-structure and what we can expect the next times in the stock with the largest market-cap at the moment AAPLE! As we have seen massive supply entering the last hours and days in all important global markets due to new corona-fears resulting of a second wave and the following economic damage which can affect the markets similar to the beginnings in march, we need to keep in mind that the corona-crisis isn't over yet and that the real economy is still struggling to conform to the status quo seen before the crisis. The last weeks the stock could gain in percentage and also developed a new a-t-h but that can change according to technical signals I detected therefore it is principal to look at the 4-hour local timeframe.
As we can examine when looking at my chart now is that the stock established three uptrend lines in the prior developed uptrend from which two already broken to the downside and the third remaining now. Such a structure can signal a reversal when the third and final trendline is broken as each trend-line signals one step to the final destination into a bearish environment. Currently, the price maintains still above the uptrend line marked in blue and it is also possible that it will consolidate even make some up bounces there but the possibility is very marginal that it holds this trend-line for ever therefore when it is broken to the downside we can expect more supply entering the market and a test remaining of the all-time-high level we have at 325 which will be an important test of the supply/demand ratio within the stock.
When the trendline is broken and we are approaching the all-time-high support which we currently still have in the structure it is highly important to hold that level to establish the condition we have seen in the stock before and to confirm a possible reversal to the upside otherwise when this does not happen and the stock confirms below this level this will cause extreme bearish pressure in the market and is possible to trade on the short-side. Within the indicator-side, we have the RSI which approached the overbought region which can indicate a reversal to lower levels in the RSI-value. Overall the current environment is sending strong bearish signs which can be realized when the proper scenarios confirm as mentioned otherwise we need to establish support at the meaningful support-lines in the range to hold the condition.
The whole stock market is in a shaky position where it is possible to decline further due to corona-fears, as already mentioned it is still possible that the bear-market established this year is not over already and that we could just trade in a big and significantly devastating bull-trap. I know most people want to believe in the bull-market and it is better for investors but we should always look at the market as rational as possible and assess it as best as we can this means to be attended for a possible downturn in the market when the bullish case does not develop and important support-levels hold when we make provisions in such a direction we can take better advantage of incoming opportunities arising out of every circumstance which is the essence for a good monetary perspective and success within markets.
In this manner, thank you for watching, support for more market insight, have a good weekend and all the best!
Information provided is only educational and should not be used to take action in the markets.
