why today was good for future apple bulls and bears
We saw a strong bounce off the open today in Apple which created a nice double bottom with yesterdays daily candle at 447. The rubber band finally snapped back after a 60+ point stretch to the downside. The action in Apple today is helpful for traders because we finally have a decent reference point to work with for short term support. We got a 12 point straight line bounce off of that 447 level and when you have such a fast bounce extending that far it gives you clues as to how much demand those sub 450 prices were getting (combination of shaky shorts covering and new longs)
I still consider todays action a “bear market rally” but regardless if you are a bull or bear you can now start to gauge the price action going forward using the highs and lows of today. And of course you have several additional reference points of resistance above todays highs (9/16 gap, previous 465 support, 475 resistance and 9/11 gap).
Goodluck trading for the rest of the week and monitor those 447 and 459 reference points for further clues as to Apples next direction. Remember V shape reversals are rare, you want to see a nice solid base develop over the period of several days to weeks. Today’s lows might be the first clue that some two way trading within a base will begin taking shape.
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