Calling AAPL's Upside Continuation ... Ahead Of Upside Exhaustion
On August 3, Mike Paulenoff alerted MPTrader members to the developing setup in AAPL that also would eventually impact the broader market:
Mike wrote: "AAPL continues to levitate within a high level digestion period and pattern off of its ATH at 150 hit on 7/15. All of the action since mid-July certainly resembles a Triangle pattern atop the May-July upleg from 121.68 to 150.00, which we should treat as a Bull Flag type of potential upside continuation pattern that projects next to 153-156, where I will be watching for signs of upside exhaustion. At the moment, only a decline that breaks support at 144.00 down through 142.50 will inflict damage to AAPL's set up-- and compromise the overall market as well. Last is 147.26."
All through this past week, Mike posted follow-up chart analysis and commentary tracking the price behavior of AAPL within its high-level bullish digestion pattern.
On Friday he wrote:
"Today my eyes will be watching the price behavior of AAPL. My pattern work argues that AAPL is emerging from a one month bullish Coil formation that projects to new ATHs above 150 (7/15), and that could extend into the 153 to 156 target zone. However, should such a scenario unfold, my pattern is also warning me that a climb above 150 at a minimum, and possibly to 153-156 will exhibit the 'right look' of a final thrust within the larger upleg from the 3/08/21 pullback low at 116.11. In other words, if AAPL pops from where it is now at 148.90 to 150.01-- +0.6%, and possibly to 153-156, or 4% to 5% higher, I will be looking for a significant downside reversal signal that also will warn us that the major averages are vulnerable to significant weakness as well."
As it turned out, AAPL climbed from 145.50 to 149.44 on Thursday and Friday, emerging from the four-week triangle formation (see Mike's chart below). On Friday APPL closed just under 149.00, positioning itself for upside continuation to eclipse the prior all-time high at 150.00 from July 15, where Mike's work will begin to watch closely for signs of exhaustion and reversal.
Join Mike and our members for "AAPL Watch" next week, with the stock poised to climb as much as 3%-5% to new all-time highs. But will those new highs be sustainable? If not, will the broad market stumble along with AAPL?
More Top Calls From Mike
Eight weeks ago, Mike Paulenoff discussed the budding technical setup and upside breakout in CRWD (CrowdStrike Holdings) with our MPTraders members, writing:"CRWD has followed the bullish scenario we discussed in late August, and in fact, today (10/06/23) has thrust above 5 months of resistance to new recovery high territory at 176.32. Although my next optimal upside target zone is 190-200, the BIG picture setup points to 230-240 thereafter... Last is 174.86...
On Monday morning, November 13, 2023, a full 5 trading sessions before the approaching November Options Expiration (OPEX) (11/17/23), I posted my chart-based commentary for our members:SPY-- Considering that Friday is November Option Expiration, where are the "magnetized strike prices" as we start OPEX week? Based on my attached Hourly Chart, the magnetized strike price zone spans from 436 to 441. Should SPY take out the upside barrier of 441, then the follow-through outlier magnetized target could be as high as 450 before or on Friday.
On October 23, 2023, ten days before the November 1st FOMC meeting and policy statement, I posted the following commentary about the downward-spiraling TLT (20+ year T-bond ETF):My attached 4-hour Chart of TLT shows that the relentless and near-vertical downtrend that commenced at the beginning of August from around 100 hit a new long-term low at 81.92 this AM, positioning it in my intermediate-term optimal downside target zone from 80 to 82.
On the afternoon of September 25, Mike Paulenoff posted a warning signal to MPTraders members about the developing acute oversold condition in RTX (formerly Raytheon Technologies), writing:"RTX (formerly Raytheon Technologies) hit a new multi-month corrective low of 71.02, down 33% from the 4/10/23 post-pandemic High at 106.02. Although RTX has violated my optimal target window of 73-75, the stair-step corrective pattern off of the 4/19/23 high at 104.
On October 3, Mike Paulenoff posted the following "Heads Up!" about GLD (SPDR Gold Trust, ETF) for MPTrader members: "GLD has pressed to an important technical inflection window from 169.50 down to 166.30, from where I will be expecting corrective downside exhaustion off of the 5/04/23 high at 191.36, and new buying interest. From a nearer-term perspective, given the acute oversold but CONFIRMED Momentum reading of 17.16 an hour ago, my preferred scenario argues for another loop down that marginally violates today's low at 168.