Two Trade Plans For AAPL After Today’s FOMC News

The FOMC meeting may create short-term volatility, but I’ll cover the bull and bear trade plan.

Read below to see how to play AAPL now.

If you’re a regular reader of this newsletter, then you may know that I’ve been advocating bullish positions in AAPL since its January low.

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However, I always look for inflection points that create opportunities for a new surge higher with a good stop loss level to control risk.

We have that set up again.

Here is a simple game plan based on 3 key levels of support and the potential for a temporary downdraft created by a bearish reaction to the FOMC meeting later today.

The three key price support levels are $197, $193 and $190. Each should be viewed as a stop level, and an area to look for any pullback to hold.

The premise of my long trade bias is that AAPL just broke over its 50-day average and a consolidation pattern with good volume.

However, I’d wait for the FOMC news to be announced. This way, we can trade the reaction.

Trade #1 is a bullish move over $200. This is a buy with a stop under $195 because that is under yesterday’s low and under $197.

Trade #2 is if AAPL pulls back to under $197 but not under $193 before breaking $200. In this case, it’s a buy over the higher of $197 or the prior day’s high with a stop under $193 or under 190 depending on your comfort level with the size of that risk.

$190 is a stronger choice.

If the market goes higher, and trade tensions ease, I would not be surprised to See AAPL at all-time highs by years end.

With that in mind, risking $5-$10 is a good bet.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily