In the last couple of days, AAPL has been stuck within a wedge. The RSI has also been confined between two very close trendlines. In the short term, we know that AAPL is hitting a roof, and will either breakout or fall back down. As this is a very tight wedge, and it is falling on a long term support line, I expect a breakout rather than a breakdown. However, if there is a wide market sell off, AAPL could be susceptible to a break down.
For those looking to trade the breakout, I would watch for the RSI to break above the resistance line, and for the price to go upwards of 120. If it jumps above that, I would consider taking an entry and selling at the open of September 3rd, in the 126 range. I would set a stop loss below the long term resistance line, in the 110 area.
For those looking to trade the breakout, I would watch for the RSI to break above the resistance line, and for the price to go upwards of 120. If it jumps above that, I would consider taking an entry and selling at the open of September 3rd, in the 126 range. I would set a stop loss below the long term resistance line, in the 110 area.
