Chart of the day

APPLE is bouncing higher from the 170 support. A bounce higher from here leads to the upside extension and a test of 190 again where it could reverse or continue higher.

This is still viewed as completing the medium-term fourth wave pullback of the five waves upside long-term if we get a bounce from here and a break above 190 now or after the consolidation phase. A break below 171 is now required for a downside reversal and invalidating the possible upside reversal. A break below this level will confirm that the upside five waves are finished and open a short trade possibility.

Long trade, you can open here with a stop loss just below 177 if you are more risk averse because this is not a clear direction. You can only open short trade entries in the case of a confirmed break below 170. We favor the long trade entries as we expect an upside extension from this vital support at the rising wedge. You can trade this price action using an options strategy as well.