I used to hate AAPL, but now I hate autocorrect

If you missed it, the SPX (S&P 500 Index) blistered through previous resistance around the 4025 level, crossing above the 200-day simple moving average.

Feelings were hurt… shorts were sent packing… and Jerome Powell was paraded around like Sean Astin in Rudy.

The one day I’m away from the trade desk… and the bulls call the bears’ bluff.

(Source: getyarn.io)

That said, I hope you banked yesterday. I know the folks in TRADECOMMAND did.

But today, I’m looking hard at taking a position in Apple, Inc. (AAPL)…

I’m not a huge fan of the company as a “Big Tech Pioneer”, although, from a value standpoint, they’re worth a look.

Inflation may hurt their international sales… But they can put a mean dent in that problem when you consider that a higher USD means purchasing power when it comes to their suppliers.

Let’s check the chart:

Above is the daily chart since the beginning of April this year…

It looks volatile, but truth be told, the last couple of months have traded in a range.

And after yesterday’s move across the board, AAPL could get a lift.

The key to this chart is the range mentioned above and, of course, Support and Resistance.

As always, the red horizontal channels are Resistance with Support in green.

You can see where the latter is by checking out the Double Bottom at ~$134.50.

The former, on the other hand, is located at an important psychological level: $150.00.

And right above that is another pressure point at ~$155.00… go figure.

A break above these two levels with strength in Volume will invite plenty more traders into the mix…

Now, I mentioned earlier that the stock has been trading in a choppy range for some time. If you look on the lower chart at the bottom indicator, I’ve highlighted in blue where we can tell if the price action is in a choppy zone.

Both the RSI and Stochastic are between the green and red areas and oscillating around each other, meaning — at least for this time frame — there’s no trade.

But let’s talk about targets here.

Once the share price heads higher and invites the hard-charging bulls, I’d look at the Fibonacci Retracement drawn from peak to trough…

First target? If you guessed the 61.8% level at $160.28, you’ve been reading Before the Bell for a while.

(Thank you!)

If the share price stands tall after that, the 78.6% level is next.

Is that it? Not necessarily…

The blue horizontal channels are what you call “Fair Value Gaps”, or, simply put, price ranges where the stock traded in one direction and wasn’t challenged on either side.

Think of it like this…

When a wide ranging candlestick trades higher (or lower), there will typically be a pullback so the price range’s “gap” is “covered” to the downside.

Gaps get filled and, at some point, so do Fair Value Gaps (credit to Michael Huddleston).

These are also potential price targets…

I’ve placed green arrows under each of them. It’s a stretch, but that’s where risk management and time horizon come in.

My plan would be to trade AAPL to an upside target close to a ~$165.00 print and then short when momentum dies down…

Good luck!