First of all, forgive me to draw so much in this chart but AAPL is on fire and we've to take a close look to price movements because we could see awesome opportunities soon.
We all know AAPL, amazing business, great margins but now suffering some issues with production that can lead to some volatility.
In this chart, you can see:
1. A very big historical bullish channel in grey that give us resistance prices in the 100-110$ level.
2. An amazing expanding triangle unfolding with potential price objective at 100-110$ zone. Take care, I'll explain further this price formation and why it could end at 120 or 115$ the movement.
3. The RED danger zone explained in the idea of few days ago. The break of this support led to -7% returns by now.
4. The small downtrend blue line that was our previous idea. We expected a bullish break that never happened, instead we've seen the break of the danger zone support, so our mind is bearish since then in AAPL. (Please see previous idea to understand this in detail).
5. Some blue lines that are major resistances, the lowest one in the 105-110$ zone. Note that this is also the expected zone of 1 and 2.
Expanding triangle explanation
An expanding triangle is a chart pattern that occurs in a trend and is characterized by a series of higher lows and lower highs. This pattern is formed by two trendlines that converge towards each other as the price moves in a wide range. The upper trendline represents resistance and the lower trendline represents support.
As the price approaches the apex of the triangle, it becomes increasingly volatile, and a breakout is likely to occur. If the price breaks out to the upside, it is a bullish sign and may indicate that the trend will continue higher. If the price breaks out to the downside, it is a bearish sign and may indicate that the trend will reverse.
The consequences of an expanding triangle in the market depend on the direction of the breakout and the strength of the trend leading up to the pattern. If the breakout is strong and the trend is bullish, it may lead to further price increases. If the breakout is weak and the trend is bearish, it may lead to a reversal or consolidation in the price.
By now, we see a wave 3 which is 1,618 times the first wave. We expect a wave 5 which could be 1,618 times the wave 3, this would move the price to 110$, again this zone... Take care, by now wave 5 is slightly more than 100% of wave 3, so the triangle could end at any time, but for us makes sense to wait for lower prices to have a better risk reward ratio.
Ahead we have 120$ and 115$ levels which are also important previous supports and resistances and could lead to some bounces or eventually to the end of the pattern. Let's keep watching!
Worst case
If the price loses the 105$ level, we have no historical volume until 80$ so a crash could happen easily. Anyway, the 105-110$ zone is strong enough to believe that demand will appear there and the expanding triangle could then be confirmed.
We all know AAPL, amazing business, great margins but now suffering some issues with production that can lead to some volatility.
In this chart, you can see:
1. A very big historical bullish channel in grey that give us resistance prices in the 100-110$ level.
2. An amazing expanding triangle unfolding with potential price objective at 100-110$ zone. Take care, I'll explain further this price formation and why it could end at 120 or 115$ the movement.
3. The RED danger zone explained in the idea of few days ago. The break of this support led to -7% returns by now.
4. The small downtrend blue line that was our previous idea. We expected a bullish break that never happened, instead we've seen the break of the danger zone support, so our mind is bearish since then in AAPL. (Please see previous idea to understand this in detail).
5. Some blue lines that are major resistances, the lowest one in the 105-110$ zone. Note that this is also the expected zone of 1 and 2.
Expanding triangle explanation
An expanding triangle is a chart pattern that occurs in a trend and is characterized by a series of higher lows and lower highs. This pattern is formed by two trendlines that converge towards each other as the price moves in a wide range. The upper trendline represents resistance and the lower trendline represents support.
As the price approaches the apex of the triangle, it becomes increasingly volatile, and a breakout is likely to occur. If the price breaks out to the upside, it is a bullish sign and may indicate that the trend will continue higher. If the price breaks out to the downside, it is a bearish sign and may indicate that the trend will reverse.
The consequences of an expanding triangle in the market depend on the direction of the breakout and the strength of the trend leading up to the pattern. If the breakout is strong and the trend is bullish, it may lead to further price increases. If the breakout is weak and the trend is bearish, it may lead to a reversal or consolidation in the price.
By now, we see a wave 3 which is 1,618 times the first wave. We expect a wave 5 which could be 1,618 times the wave 3, this would move the price to 110$, again this zone... Take care, by now wave 5 is slightly more than 100% of wave 3, so the triangle could end at any time, but for us makes sense to wait for lower prices to have a better risk reward ratio.
Ahead we have 120$ and 115$ levels which are also important previous supports and resistances and could lead to some bounces or eventually to the end of the pattern. Let's keep watching!
Worst case
If the price loses the 105$ level, we have no historical volume until 80$ so a crash could happen easily. Anyway, the 105-110$ zone is strong enough to believe that demand will appear there and the expanding triangle could then be confirmed.
