Apple (NASDAQ:AAPL) is a stock I like to trade frequently because it often sets up well technically. AAPL saw a harsh down-move after topping out above $700 in September, and is now a bit broken technically. Whereas I usually trade the stock with a little bit of a bullish bias, right now I am very neutral and nimble.
AAPL relieved a lot of pressure with the potent reversal on November 16th and was able to bounce back up to near its 200-day moving average. However, buyers did not step in aggressively at those higher levels and AAPL never reclaimed the 200-day MA, a bearish sign. After putting in a higher low on December 6th, the stock has been trying to bounce but has not been all that impressive.
For short-term bullish composure to remain intact AAPL needs to hold the $537 area, which is yesterday’s low. The short-term reference point of resistance is yesterday’s high, and then Friday’s high will be the level to watch. AAPL is often a great swing trading vehicle, but right now I am treating it as a cash-flow trading vehicle only. The stock has a lot to prove after the recent price action.
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Here is a shorter-term look at the AAPL price action yesterday, which worked well according to the video I did yesterday morning.
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Disclosure: Scott Redler is long AAPL, XHB, GCI, BAC, MGM, FB, LULU, GS, JPM, INTC. Short SPY.
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