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Monday, December 19, 2011

Why it's worth preparing to short Apple (AAPL)?



 Personally I do not have open positions at AAPL, however, I'm starting to feel that the moment for the good short will be available. On the daily chart (1st chart) we can see the consolidation of the price at the levels between 400$ - 360$. However, the last lower high at the start of December indicates of the possibility of the change of the general trend. It is only signal and it shows that maybe the dynamics of the price MIGHT change. I will be looking at the break of 200 MA below 360$. The plan is to short a bounce up after the break of the general trend. Stochastics in daily and monthly (3rd chart) show the momentum of the stock is downside, however, the weekly (2nd chart) stochastics is at the neutral position.


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