Here’s the Game Plan for AAPL

Apple, Inc. (AAPL) got a major breakout today after forming a very tight 5-day range last week. Monday’s breakout could spark a solid multi-day advance in the days ahead. Here are the levels to watch for entries and targets.

ADR Method

5BNR Breakout

Apple got a major breakout from a 5-Bar Narrow Range (5BNR) price pattern today, which sparked a solid rally throughout the session.

A 5BNR develops when the current 5-day range is smaller than the 5-day ranges over the last x number of periods (usually 10 or 20 periods).

This price pattern is great at identifying when price is coiling ahead of a potential breakout opportunity, and has a huge success rate.

Apple, Inc. (AAPL)

Despite Monday’s major breakout rally, much more strength could be seen ahead.

Average Price Range

Apple’s average 5-day price range over the last 5 periods prior to today’s breakout was $19.46. However, during the 5BNR the price range was only $9.61, which is far less than usual.

The 5-day price compression indicated a breakout was likely ahead, and Monday’s rally of $6.75 indicates there’s likely much more strength ahead. You see, since the average 5-day price range was $19.46, AAPL is likely to have a price range of about the same amount over the upcoming 5 days (including Monday).

Therefore, we could see nearly 13 more points of upside movement ahead.

The Game Plan

Monday’s breakout led to the formation of a 2-day Higher Value relationship using the Pivot Range, which occurs when the upcoming day’s Pivot Range is completely higher than the prior day’s Pivot Range.

This is the most bullish 2-day relationship and indicates we could see more upside ahead, especially if price remains above the bottom of the pivot range at $626.60 tomorrow.

If price opens the session above $629 and drops into the pivot range within the first 90 minutes of the day, look to buy between $627.75 and $628.85. If price opens between $628 and $629, look to buy between $626.60 and $627.75.

Apple, Inc. (AAPL)

All bets are off if price opens the session below $626.50, as a drop back toward $622 may be the end result.

As for targets, look to play to the 5-day ADR Method swing targets of $635.26, $637.85, and $642.71. The first two targets have a great shot at being reached, whereas the last target has about a 50% chance.

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Let’s see how AAPL plays out!

Cheers!

Frank Ochoa
PivotBoss | Own the Market

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