Watch For The Bounce… (AAPL)

by | Jan 2, 2024

When tech goes crazy, it’s easy to think it will go to the moon and never come down.

But it always comes down.

And those are the opportunities that the famous traders try not to miss.

Coincidentally, we’re getting a situation like that now on Apple (AAPL).

AAPL has been bearish lately, and one analyst has even recently downgraded the juggernaut (gasp).

Suddenly, the trillion dollar baby is not so hot.

Here’s the chart:

But look at that.

It’s not armageddon. It’s a boring move back to the 30-week simple moving average.

A typical bounce off of the SMA could lead back to a buy point at $198.23. 

And a big move afterwards.

The new year is sending us a gift on a huge tech stock. 

We’ll keep an eye on it.

Happy trading,

— Scott Welsh

P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.

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