Apple, a $2 trillion dollar company has immense scope in the longer run. They are diving into electric cars soon, which will surge its stock to new highs.

For stocks, usually Daily timeframe is preferable given the time span of holding is longer than usual swing or intra-days.

Market structure: Market structure on Apple is still bullish. The structure has formed HH and HL. The support at 140 has been holding strong enough till now. If it’s broken, only then we will see a move down. Right now, the potential of upside seems brighter once the support level is tapped.

Retracements: The golden area of retracement stands in confluence with the support, exactly at the 142-143 region. This retracement would be considered a minor one, as the time period between the swing points is shorter.

Trendline: Apple is range bound right now, in an uptrend. At this level, market is forming a flag pattern in which we see both the descending and ascending trendline, either of which has been broken yet. Given the uptrend, high probability of the upward break is higher.

EMA: EMA 50 is below the market whereas EMA 200 is above the market. EMA 50 might be retested at the support level of 140. This will add another confluence for the bullish impulse. EMA 200 can be targeted as the potential target for profits.

RSI/CCI: Both oscillators are in a bullish zone pending a trendline breakout. Once a breakout happens, both the oscillators will turn bullish adding to the confirmations of the bullish move.

At the support level of 140, there are solid confirmations to go long on APPLE. As the range is forming, more volume is being absorbed in the stock and once it breaks out on the upside, the volatility will be parabolic. We should be projecting the stock holding for at least few weeks or months.

Apple range bound between 140-146

Aug 03 2021

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