In this chart, AAPL is testing a crucial zone as resistance, which acted as previous macro support dating back to September of 2020.
As you can see, there is also a downwards sloping resistance forming as well, which it’s testing as well.
In testing its previous macro support as newfound resistance (red) and local resistance (light blue) simultaneously, we can conclude that this test for AAPL is crucial in determining what comes next…
I will continue to develop this test of resistance as the chart develops, and update the idea once it breaks in either direction!
I pulled out my calculator to check yesterdays price action. It appears it would fit the criteria of a topping tail except it's not at a recent high. That said, I consider it a bearish candle for sure and a perfect retrace. Today's price action seems to go along with that idea. So, I lean toward continued downward price action in the days ahead. If true, it's almost certain to pull down the Nasdaq with it. So shorting the Qs (with a small position size) would seem to be an aggressive, but reasonable action, with the probabilities in your favor. However, caution is warranted and looking for a confirmed close above the trend line mandatory. My take anyway. Love the chart action Gareth! You ask questions, but choose charts that teach TA principles. Much appreciated!
GarethSolowayOfficial
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@absaroka, Thank you for the response! Great analysis
allout06
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Ope! We went the other way.
I did not trust this resistance on Apple due to the fact that our weekly and monthly trix had turned green and momentum had shifted. Same thing on the SPY. I was calling for $430 when everyone was short and I got ridiculed for it lol. Well, here we are headed to $430... Gotta pay attention to that momentum. I personally use the LazyBear Squeeze momentum indicator and the CRT Trix indicator, and the RSI. I dont use the MACD or Stoch.
Now that we've rallied like I expected, I am starting to look for shorts in the market. I'm personally watching TSLA for a short either here at $200 or around $210 which is the upper monthly band. I now like AAPL for a short as well. I'd love it test the upper trend again first though.
GarethSolowayOfficial
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@allout06, Never know how it'll play, but was certainly worth noting!
allout06
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@GarethSolowayOfficial, Absolutely! I saw the same thing but decided to wait to pull the trigger haha.
AlmadeCubano
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Look at Wal*mart in the period from 1992 -- 1997. It was the market's darling -- a "can't miss" investment, that had made many working stiffs millionaires. But it was too large, and couldn't redeploy it's capital into higher return investments. So it went nowhere for five years.
Apple is in that same spot now.
relievedMind65097
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@AlmadeCubano, You sound like a real old-timer who paid his dues. I like that, sir.
geordiecrew77
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Thanks Gareth. I love your analysis, particularly how you don't shill and just allow the charts to decide on the direction then base your bias on what plays out. I agree we will see $100 in 2023. Cheers.