About 1 month ago Apple Inc started rising aggressively from the bottom on a channel it started forming in September last year, it also left a gap in price of just under $10.00 which I now believe will probably be filled in June 2018.
So, without further ado, let's go in to why I believe Apple Inc shares will drop this week and start June 2018 with bearish movement.
Let's start with a recent leak which suggests the new iPhones will cost even more than the previous ones. This can have a negative effect on sales as it might not fit everyone's budget. (More on Forbes).
Now let me head over to the charts:
Daily APPLE Chart
As you can see, Apple share price is trading within a basic channel setup, even though price action is currently above the top of the channel (resistance level), I believe that there are higher chances of price action heading lower than there are of price action heading higher, hence the reason I have a tight stop.
Monthly APPLE Chart
Here we have a basic 3HH pattern (3 higher highs = high probability reversal pattern). Now, this pattern has so far worked very well for me, the only issue we are facing here is that we are looking at the monthly chart, that means that the reversal can come in a much longer time frame.
I will surely take the APPLE sell trade today when the US market opens, as for NASDAQ, I might get into that setup too if the H&S is confirmed.
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Now imagine you took a 10 lot sell on this setup (€161 margin required on 1:100 leverage), and price action covered the $23.00 gap, you would have just made €198 in just 23 pips (by only risking €40, if you follow my SL), giving you a toal 4.5 reward to 1 risk.
Wouldn't that be great? You would probably have a bigger smile on your face than this lady below, who's clearly enjoying biting this apple!