Another week, another trade setup by Apple (AAPL). This time, the stock is following in line with Friday’s rally, signaling the stock could be looking to push higher. For this trade, we again look to the chart to see what the price is telling us.
As you can see in the video below, AAPL has found some support at a key level, pushing higher after a bounce. This tells us two things, where the stock needs to hold and where it needs to break through in order to continue rising higher. If price can push through the price level the market has set for us, the stock could make a run to its next resistance level.
Another important this to note, the momentum divergence that took place. This could be another signal traders could use in order to place the highest probability trade. Remember, when it comes to finding and drawing these levels, we look for the market to set the levels then we just connect the dots. Gauge overall market sentiment and then figure out whether the specific stock you are analyzing has relative strength or weakness compare to the broader market.
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