Should we buy Apple Inc stock at $200 per share as of August 2019? Apple #APPL stock supply and demand technical analysis is telling us a different story, we should not be thinking of buying Apple stock and holding it since there is monthly supply that has just gained control. When this kind of imbalance gains control, we expect price to react to it and produce lower timeframe imbalances.
A monthly supply imbalance was created last October 2018 around $218 per share. It has taken Apple nine months since that imbalances was initially created last year. That monthly supply level is very strong, Apple Inc dropped like 35% in about three months. Price is up there again and trying to replicate what it did the first time.
Ignoring or being unaware of these imbalances will cause you a lot of headache trying to wonder why you are losing your long positions on Apple Inc stock. It has nothing to do with unpredictable Donald Trump’s personal battle with China and the billion dollars that is costing both parties, it’s as simple as having a very strong supply imbalance created in the monthly chart.
Doing this kind longer term supply and demand technical analysis on Apple Inc stock can also help you if you are intraday or short term trader. As a day trader, if you are away of 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 got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
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