AAPL created a significant PIVOT POINT on December 27 when it gapped down and rallied from $77 area and closed at $82. Price actions like this signals that there is a general shift in trend mentality among traders and investors. Since then, it proceeded to move upward until last week where it moved sideways in anticipation of the appleworld convention announcement today. Basically, the last two weeks' price action can be categorized as a BULL FLAG price pattern. It might not be obvious but to highly skilled traders, this pattern jumps out right away on this APPL chart.
I bought 1000 shares for the BABYSTEPS account when price broke above $86.50 and my trade was cleared at $86.75. The initial stop loss is below the 4 day congestion pattern at $83.75. This trade assumed a total risk of $3,100 and an initial target price of $100 for AAPL.
I'm looking to buy another 500 shares if price gives another proper buy point after the earnings announcement this month but for now, I will just move the stop to $86.75 to not let a winning trade turn into a loss.
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