The sell-off in Apple has been spectacular and the big question is when to get back in with long positions. I've no doubt Apple is traded well beneath its intrinsic value from a fundamental perspective, but from a technical viewpoint there are few signs of a change in fortune based on Ichimoku principles.
The weekly time frame is very bearish which supports the picture on the daily time frame. All through this downtrend the Kijun-Sen (red line) and the bottom of the Kumo have performed exceptionally well as resistance points and good low-risk entry points to get back into a short trade.
Price remains below the Kumo, Tenkan is below Kijun, Chikou is below price and the future Kumo remains bearish. On this basis there are no signs to change the view that Apple has at least another leg down. A good place to trap price and trigger a trade would be in the coming days when price drifts in the zone between the Tenkan (aggressive entry), or Kijun (more conservative entry) and targetting the recent low as a first target.
The trend will change soon, the Kumo is starting to thin and if we see a double bottom on this trade and some flat-lining of Tenkan and Kijun we could be set for a move through the cloud after a period of sideways action.
The weekly time frame is very bearish which supports the picture on the daily time frame. All through this downtrend the Kijun-Sen (red line) and the bottom of the Kumo have performed exceptionally well as resistance points and good low-risk entry points to get back into a short trade.
Price remains below the Kumo, Tenkan is below Kijun, Chikou is below price and the future Kumo remains bearish. On this basis there are no signs to change the view that Apple has at least another leg down. A good place to trap price and trigger a trade would be in the coming days when price drifts in the zone between the Tenkan (aggressive entry), or Kijun (more conservative entry) and targetting the recent low as a first target.
The trend will change soon, the Kumo is starting to thin and if we see a double bottom on this trade and some flat-lining of Tenkan and Kijun we could be set for a move through the cloud after a period of sideways action.