APPLE is reaching a strong upside resistance of 167. A confirmed break above this resistance warrants a substantial upside extension, but we may expect a new swing down for now.
Only a confirmed break above 169 will lead to an extension higher and a continuation above 170 to test the 180 key level for this year.
Any short-term confirmed break below 162 would lead to a bearish swing lower to 145 again, for which we give a little more weight than an upside break above 170.
This could be a medium-term low-risk short trade, but we reserve the right to switch to a long trade in case of a break above 170. Price action positioning and a near-strong resistance with a rising (usually bearish) wedge give a short trade a greater probability as the volume of trading is decreasing also.
You can take the short trade here with the stop loss just above 170 as we see a higher probability of a swing reversal lower. By placing this trade your RR ratio is above 4. If you are stopped, you can reverse your trade to a long trade, especially in the case of a confirmed break above 170.
