- Apple initially gapped higher to kick off the trading session on Thursday, only to turn around and fall rather rapidly.
- By doing so, the market ended up filling a gap, testing the middle of the bullish pendant that we had been in, and then turned around to show signs of continuation.
- At this point, Apple continues to be a very bullish market just waiting to break out, and I do think that it is probably only a matter of time before that does in fact happen.
The Importance of $260
The importance of the $260 level should be paid close attention to, because it is a large, round, psychologically significant figure, and an area that we had pulled back from during the Wednesday session, reiterating the importance of this level. All things being equal, I do think that eventually we break above the $260 level and it’s likely that there will be a bit of “FOMO trading” as we step into the market in that general vicinity.
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Short-term pullbacks at this point in time will continue to attract value hunters all the way down to at least the $255 level, but I also think that the $250 level is an area that a lot of options traders will be defending, and of course a lot of traders will be watching very closely. The candlestick for the trading session on Thursday will be important, but more importantly, we want to pay attention to the weekly candlestick, and whether or not it shows buying pressure. As things stand right now, it’s a weekly candlestick that I think will be bullish, but the range isn’t exactly impressive. This is where the $260 level comes in, and I will be watching that very closely. If we do take off to the upside from there, I anticipate that Apple could go looking to the $275 level over the next several weeks.
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