Wednesday, December 05, 2012

Apple Inc. (AAPL) Short-term Long Setup







Here are two AAPL 15 minute charts and possible scenarios to get AAPL to trade to the ambush short that I highlighted in my last post.

The first is a straight ambush long from capitulation lows to recent highs.  We are in the zone now.

The second is an AHA trade setup.  After the capitulation bounce, we peaked and never traded half way back.  Instead we drifted higher to the initial target.  This scenario is highly likely as the ambush zone lines up perfectly with gap support.

6 comments:

penelope cruz said...

What is the difference between the two scenarios ? Each has the level 539 to watch as a possible support. And a long to perhaps 615 or so.

Thanks for the posts though, Jamie. Appreciate your work on AAPL. You have been on track with the stock movement in the last couple of months.

Jamie said...

Thx penelope,

The difference is the top line pull on the Fibs. Both use the same anchor, but the 2nd chart uses the initial thrust high as the top line as opposed to the most recent high.

Ideally, you want to see participation from the 50% retracement line (yellow), so I would go with the second scenario.

There is a follow-up court hearing between AAPL and Samsung tomorrow. So, you might want to watch tomorrow's headline news.

penelope cruz said...

That is one ugly candle on AAPL..

penelope cruz said...

539 reached today. what happens if it gaps down tomorrow at the open ? Do you still expect the H&S to pan out soon ?

Jamie said...

AAPL poised to gap down on the open. Too late to do anything now. AAPL may even retest the lows before retracing and making a full RS.

penelope cruz said...

Gapped down and filled the gap. At least not an island reversal. Samsung vs. Apple case is later in the day.. maybe around noon.