AAPL Technical Analysis for Tomorrows - Dec.23
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! 🚀
