AAPL (Apple Inc.) will trigger an objective short entry on a solid break and/or daily close below this primary uptrend line. The current swing targets* are T1 at 177.35, T2 at 170.45, & T3 at 157.44 with the potential for additional targets to be added if a sell signal is triggered soon & depending on how the charts develop going forward. As of now, this is only a trade setup pending a sell signal/entry trigger, not an actionable trade. Suggested stops using a 2:1 or better R/R to one’s preferred price target(s).
AAPL daily June 23rd
This daily chart spans back to just before the start of the current bear market in US equities (Nov ’21 for the Nasdaq 100 & start of 2022 for the S&P 500, Apple & many non-tech related sectors), highlighting the extreme overbought readings of around 75 on the RSI, all of which preceded or accompanied major trend reversals. As I like to say, overbought is a ‘condition’ on a stock or index, not a sell signal. Hence, the reason for waiting for a break of the uptrend line as overbought can become ‘more overbought’ or stay overbought for an extended period of time.
Also worth noting are the large divergences between price & the momentum indicators which are currently much larger than the last divergent high on the daily time frame which occurred at the start of the bear market. All of the other big downtrends in AAPL since then were simply triggered by breakdowns below comparable uptrend lines & overbought conditions. Needless to say, should Apple trigger a sell signal & go on to hit at least T2 anytime soon, that would most likely bring the rest of the market-leading tech stocks & the market down with it.
*Price targets on short trades are shown at the actual support level(s) where a reaction is likely upon the initial tags. Always best to set one’s buy-to-cover limit order slightly above the support level(s) you are targeting, in case the buyers step in early.