During the last week Apple reported its latest quarterly earnings. While some traders purposefully avoid trading through earnings, there are plenty of others who do (Jon Boorman, who's blog I highly recommend, is one, and here he explains his reasoning for it).
For trend followers, while you need to be aware of gap against you, more often than not the existing trend will remain intact, and can lead to a significant move in your favour.
Apple's chart shows how the stock has lost some of its allure over recent months, with price falling around $300 at one point from its all time high. The chart clearly shows the downtrend has now slowed, and it is attempting to reverse course. However, every attempt at breaking out to new highs so far has failed. The staircase (and therefore the trend) has not started moving up as yet.
Post a Comment