Trading Apple (AAPL)

In my couple of previous updates for Apple (AAPL), I have been advocating it was finally time to go long on AAPL stock once again. It’s about time. I really did not like just sitting here with my shares and collecting a dividend. If you are interested in trading Apple (AAPL), then continue reading.

AAPL – The Trade

AAPL achieved its Golden Ratio during the current uptrend and captured some nice gains along the way. I wrote about its Golden Ratio and price target in this article:

AAPL 8/4/2016 – Achieving Gold, Or At Least It’s Golden Ratio

What chart action can be expected next for AAPL’s share price now? Well, looking at a 2 year weekly candlestick chart, here is how I see its current Bullish Impulse Wave Pattern developing.

The Bullish Impulse Wave Pattern I See Developing On AAPL’s Weekly Candlestick Chart

AAPL – Pullback Watch

If AAPL just finished a Wave 3 in its Bullish Impulse Wave Pattern like I anticipate, then AAPL should find support around the 38.2% and 50% Retracement Lines when I place a Fibonacci Retracement Tool on the Wave 3 I identified above.

Using a Fibonacci Retracement Tool to Estimate AAPL’s Wave 4 Pullback

The Retracement Tool suggests a pullback between the $104 – $107 range. If you decide to try and flip some AAPL shares before its next earnings report, I would look to trim some shares on any strength this week as AAPL approaches its $116.18 high from the uptrend so far. You would then look to repurchase those shares around the 38.2% and the 50% Retracement Lines.

When flipping shares, I usually retain a core number of shares in case the analysis morphs into something else. This way I can still participate to the upside if the analysis is incorrect and also limit my risk to the downside by decreasing my share count when a pullback within the larger uptrend looks probable.

Apple – Summary

AAPL’s share price appears to be on a crash course with the $125 area. That’s about where a Wave 5 looks to be heading. However, reaching that goal may involve sitting through its upcoming earnings report. Apple’s next quarterly earnings are scheduled to be reported on October 25, 2016 after the market closes.

I have decided that since I have waited this long, I will continue holding my AAPL shares for the short-term and look to exit my position upon the completion of Wave 5. Sometimes trying to trade a Wave 4 in a Bullish Impulse Wave Pattern can be tricky. Since I have been patient for this long with my shares, a little more patience will not kill me. However, if I did decide upon trading Apple (AAPL), I would look to do it with the game-plan I laid out above.