Should we buy Apple Inc stock at $320 per share as of January 2020? Apple #APPL stock supply and technical demand analysis is telling us that we have an uptrend, all-time highs have been broken and very strong impulses have been created after all-time highs were broken.
However, having a bullish stock does not mean we should jump and buy hundreds of shares straight away. That would be a very emotional behaviour, usually resulting in losing money. Take a look at Apple Inc #AAPL monthly timeframe technical analysis below. We have a clear uptrend and a strong bullish impulse that originated at the monthly demand imbalance around $218, five consecutive months of rallying and not looking back.
Apple Inc. stock is now very expensive, and if you were long from lower, it might start to retrace any time soon because of the supply and demand core rules. Too much demand, too expensive of a product, taking profits is what usually happens. You buck in profit, sell orders are executed, and Apple Inc starts dropping because no long-term buyers are interested.
Remember this is a longer-term analysis for Apple Inc #AAPL, short term analysis and intraday trading on Apple is another story. However, you should pay attention to the bigger picture because you could be caught in the middle of a long-term bearish correction.
This long-term supply and demand analysis just explains the bigger picture trend and points out the potential bearish correction that could start soon and the strength of the imbalance created on the monthly timeframe. It could take a few weeks, or even a couple more months, before we start seeing price stalling and losing steam, getting ready for a bigger correction.
Ignoring or being unaware of these imbalances will cause you many headaches trying to wonder why you are losing your long positions on Apple Inc stock. It has nothing to do with unpredictable Donald Trump’s battle with China and the billion dollars costing both parties; it’s as simple as having a very strong supply imbalance created in the monthly chart.
Doing this kind of longer-term supply and technical demand analysis on Apple Inc stock can also help you if you are an intraday or short-term trader. As a day trader, if you are away from these bigger timeframe imbalances, you could start looking to sell short Apple stock using short-term stock strategies and even long put options and spreads.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has a name, and it’s called the waiting game. We must patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade; in our case, these prices are made of supply and demand imbalances.
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