The second greatest company in the world - Apple Inc (AAPL) recently launched the sale of its Ipod2. Ipod2 were reportedly selling like hotcakes. However, Apple's share price is currently breaking down from its all time high of $360. Investors looking to invest more money into the market should take note. The market operates on a forward looking paradigm and the charts are indicating short-term weakness at this moment.
See chart indicated below. The price action had broke down from its 50day MA, which indicates that long term trend traders had probably exited their position. These traders will re-initiate their positions when price action returns above the 50day MA.
How to trade this setup?
Apple is a short-selling opportunity at current levels with a stop loss at the blue spot. Any close at the blue spot would indicate a sigh of strength. Use correct position sizing to initiate the trade. It is also a short if Apple retest the 50day MA resistance and failed to break through it.
As the famous stock market trader Jesse Livermore once said: "As the leader goes, so goes the entire market"
See chart indicated below. The price action had broke down from its 50day MA, which indicates that long term trend traders had probably exited their position. These traders will re-initiate their positions when price action returns above the 50day MA.
How to trade this setup?
Apple is a short-selling opportunity at current levels with a stop loss at the blue spot. Any close at the blue spot would indicate a sigh of strength. Use correct position sizing to initiate the trade. It is also a short if Apple retest the 50day MA resistance and failed to break through it.
As the famous stock market trader Jesse Livermore once said: "As the leader goes, so goes the entire market"
No comments:
Post a Comment