Apple, Inc. engages in the design, manufacture, and sale of smartphones, personal computers, tablets, wearables and accessories, and other varieties of related services. It operates through the following geographical segments: Americas, Europe, Greater China, Japan, and Rest of Asia Pacific.
Take a look at the 5-year chart of Apple (NASDAQ: AAPL) below with the added notations…
Chart of AAPL provided by TradingView
Over the past two years, AAPL has been trending higher, while also forming a nice channel pattern (blue) along the way. Channels are created by parallel trendlines, and a break of either line can signal a trend change, or end of trend, for AAPL.
The Tale of the Tape: AAPL has formed a rising channel and broken its support. Short trades could be considered with stops placed above the level of entry.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
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