AAPL Update

I'm happy to have added those last June $540 calls in AAPL, they are now up 14%. Here's what AAPL looks like thus far...

 AAPL put in a star reversal candle on Friday, if today's action holds (currently up about +3%), today will serve as confirmation of the candlestick reversal pattern of Thursday/Friday. Volume was fairly large Friday, a move above the resistance area at the red trendline should cause some short covering and see AAPL gain upside momentum, I'd expect some consolidation before an attempt to break what is important resistance, but again, this is why I don't short the first break of major support as the breakdown is almost always shaken out to the upside.



 AAPL intraday 10 min chart. You can see some basing activity in AAPL from late last week, also multiple zones of resistance, AAPL just hit one of the higher ones and has pulled back a bit, earlier being up over 3%.

 AAPL 1 min with a positive divergence in the area of basing activity and a small positive divergence forming on today's pullback from resistance.

 The longer trend of the 1 min chart, as mentioned last week, accumulation doesn't happen in a day or even a few days if there's to be a powerful move, it takes time so Wall Street doesn't tip their hand with large orders, it's all broken up in to smaller orders, thus taking more time.

 The 5 min positive divergence in the basing area.

 The overall 15 min story with AAPL and Tech seeing positive divergences on April 23/24 which was also on the day AAPL reported earnings after hours, the pop higher on the 25th saw a negative divergence and profit taking in to that move, but since, like many other 15 min charts, AAPL has managed to stay in a leading positive position, it is charts like this as well as the leading indicators on the Risk Asset layout that have kept me believing in a move higher, of course a broken clock is right twice a day and eventually the oversold condition will lead to a bounce, but these 15 min charts and other evidence suggest that this will be more than a move to simply relieve an oversold condition, they suggest a quite strong move that will likely shift sentiment.

 AAPL 30 min is overall very negative, but seeing the positive divergence show up here also suggests a quite strong move, much more than traders will be expecting based on oversold RSI readings.

Even the 60 min chart that fell apart amazingly fast and has been leading negative ever since the deep negative divergence at AAPL's highs, is showing a positive divergence. A positive divergence all the way out to a 60 min chart suggests there's been strong underlying accumulation in AAPL in to price weakness. A positive 15 min chart would suggest an impressive upside move, a 60 min chart even more so and although I've expected AAPL to lead a final counter trend rally or bounce, I am surprised to see the divergence reach the 60 min chart.

I'll be holding those AAPL Calls for now and likely for more than just a few days, I will also be holding the much larger AAPL short and looking to add a bit and fill it out in to decent price strength.