Anthony Speciale Stock Market Analyst

Better Way to

WEALTH
MORE MONEY, MORE QUICKLY, MORE SAFELY.

Here’s Why Closing Prices Are So Important

You will hear me utilize the term “settlement” over and over again… Why? Because closing prices are so important in trading!

Good morning, and happy Thursday! Welcome back to A Better Way To Wealth!

You will hear me utilize the term “settlement” over and over again… Why?

Because closing prices are so important in trading! It’s really that simple!

I am likely one of the most conservative traders you’ll ever meet. There’s no by-the-seat-of-my-pants trading here!

I want confirmation on as many levels as I can possibly get it. I want volume. I want known support and resistance. I want settlement (preferably) on multiple timeframes.

Call me “a pain in the ass” if you want… I’ll take it with pride. Why? Because it all matters!

You’ll come to learn that I love to see “settlements.” By that I mean closing prices. Daily is good, but weekly is better! The greater the timeframe, the stronger the confirmation!

Some technical analysts use intraday triggers. But I do not in my trading plans. Do I realize that sometimes you can get a better entry intraday? Absolutely! 

But I also realize those strategies trade in, and possibly get stopped out of, every nook and cranny of the market. I’ll gladly save my nooks and crannies for my English muffins!

I want to see a daily settlement beyond my breakout level by a 1% confirmation margin. In fact, I prefer a weekly settlement beyond my breakout level by a 1% confirmation!

I prefer to identify every reason not to take a trade prior to entering, rather than talking myself into every reason under the sun to enter a trade that may or may not work out. 

I sleep really well at night in my absolute favorite position… Cash!

The less I can trade, and the more I can make when I do trade, the happier I am!

Chart Analysis

On Jan. 24, 2022, we saw Apple Inc. (APPL) test significant support with noticeable volume. 

What does this mean, and how do we equate that into a tradeable opportunity?

Let’s break it down!

First things first, we’ll take a look at the numbers and the chart.

Apple Inc.
Daily Chart of Apple Inc. (AAPL) — Source: MarketSmith Inc.

Pictured above are the financials of the company we all know so well, Apple Inc.

There is clear presence of both sales and earnings growth, and just a short while ago at all-time highs the company had a market value of $3 trillion.

While all these numbers tell us a lot, perhaps simple technical analysis does so too in just a slightly different manner.

Let me explain… Take a look at the chart below.

Daily Chart of Apple Inc. (AAPL) — Source: TradingView.com

First, you’ll notice that my charts aren’t cluttered with a bunch of indicators or overwhelming amounts of information.

The simpler, the better and clearer a picture you’ll see! I’m looking to take macro information and turn it into massive gains.

You can clearly see Apple tested long-term support at the black channel bottom identified by the upward arrow, and it’s trending above its 200-day moving average on noticeably strong volume.

You can also see the blue channel top where it’s currently testing new resistance that has previously served as support. If we can get a settlement above the blue channel line, preferable by a 1% margin, we could see Apple rally again from there.

A daily, and preferably a weekly, settlement above the blue channel line by a 1% confirmation margin should propel AAPL back towards its recent highs.

After a conservative entry trigger has been identified, I’d place a stop loss under its most recent swing low on a daily timeframe chart, with the intention of starting to book profits at the $180 handle. 

Understanding this is not a huge winning trade on a percentage basis on the stock chart doesn’t necessarily mean it can’t be in the options market, however.

The call option I’d consider if this trade does confirm and transpire would be the AAPL May 20 (2022) expiration $180 strike call option (AAPL220520C00180000).

As always, I strongly encourage you to decide for yourself if the above trade could potentially be a fit for your trade plan in addition to discussing it with your licensed financial professional prior to considering buying shares and/or call options.

Rules to Live By

“Losers visualize the penalties of failure. Winners visualize the rewards of success.” 

– Unknown

Until next time, I wish you a beautiful and blessed day!

Yours In Trading Success,

Anthony Speciale Jr.

Share on facebook
Share on twitter
Share on linkedin

Leave a Reply

Your email address will not be published.

Better Way to

WEALTH

Subscribe today and receive daily advice right in your inbox, guiding you to a better way to wealth.