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.