AAPL is retesting the January 2022 high of 182.88. This retest is now key for the upside continuation or a hard downside reversal and a break of this rising wedge (usually bearish). The downside resistance level is 175.
How to trade this?
This is an excellent opportunity to short AAPL as it is now reaching the apex of the rising wedge with a so-called overthrow and a confirmed break below 175 will give us confidence and clarification for a downside reversal lower. This is five upside waves finish as we are seeing also a big negative divergence on RSI. You can go short here with a stop loss above 185 and also you can buy some puts deep out of the money.
There was a little upside surprise in the earnings report of 6% which should not have significantly influenced this kind of price change. The recent high should be a result of buybacks.
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