Here’s how we’re trading Apple ($AAPL) – August 30, 2021
AAPL
I want to look at Apple ( NASDAQ: AAPL ) today. This is something that I have been watching for a while. We first got in as a trade, with Stock Market Mentor, back in June, right when it was coming back through the 50-day moving average. So for the purposes of the trade approach, this is a really good entry.
You could say, this was a good entry Dan. Okay fine, I get it, it was but this is not that. It is a different type of trade, it’s more of a swing trade prolonged. What I mean by that is, the stock rallied up here on heavier than average volume. It kept going; I’ve covered this before in the Free Chart Videos so this shouldn’t really be much of a surprise.
The stock comes up and finally peaks at 150.00. That’s an even number, it’s something that you could typically expect when a stock comes up to an even number, 100, 150, you get the point. You will probably see some resistance there. Or if it’s to the downside, some support there just because a lot of times that is just where the psychological triggers are for people, oh, I will sell if it gets to 150.00, that type of thing. That was definitely the case here.
I just decided that even though the stock is going sideways and it drifted sideways, for like 6-weeks, I just decided that it’s best to hold through this type of thing. Now, swing traders, you wouldn’t have been doing that. You would have been buying here and probably selling sometime up here. But a lot of people don’t have that kind of nimbleness simply because they’ve got stuff to do. You’ve got work, you’ve got family, you’ve got this, you’ve got that. You are not going to sit here and watch the stock all of the time and so this trade was really for you people.
Now, as I look at this, I see all of these stair-steps higher, and to my eye, this is just starting to get going. So this is not something that I would be into selling right now. For cryin’ out loud, the reason why we held through 6-weeks of sideways action is to take advantage of this stupid thing. Now, that it’s doing it, as I see it, this is the cup that has formed. And then it’s formed this really long, prolonged handle here and now we are just kind of getting a breakout from that.
Now, you can say, and you would be right, well, that really isn’t a cup and handle Dan, it doesn’t meet some of the parameters. And again, you would be right, it doesn’t. But for our purposes here, it is just a good method of analysis that gives me what I want to get, which is a nice reliable pattern here. A nice sideways move here and then finally a breakout to the upside.
Frankly, I think it is certainly reasonable to look for 180.00 on this, maybe even higher than that. But this was a pretty deep trough, about 20 percent from top to bottom, that’s about 30 points. And so then, if we look at this breakout and we go up 20 percent, that’s about 180.00 almost to the “T”. So that’s really the price that I have got here on Apple ( NASDAQ: AAPL ), 180.00. And if has the courtesy to do that for us, this is going to be a really, really good trade for us. Particularly, since our cost basis is down at 130.00.
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