Thursday, August 14, 2008

Fruit ripe for the picking

I was looking at Apple earlier this morning. Looks like it may be setting up for a possible pullback and a decent short. As you can see from the picture that is attached to this post, Apple has used 180 for both support and resistance in the past few months. When it went up through it before it was on large average volume and when it finally broke through the 180 level it did so on heavy volume. Currently it has much lighter volume and a series of white candles (much smaller at the time) that will probably work against it. The slow stochastic is also in the overbought range.

I may try to short aapl at 180 and set a stop at 181. I think it could hit 165-170 before bouncing back up a little, probably forming a W before it tries 180 again. We'll see. The new iPhones and its store are doing well. So do not forget a stop. This is a good company.

I am not currently long or short on Apple and have made this post for intellectual purposes only.

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