U.S. & World
U.S. & World

An Analysis on AAPL

By on February 14, 2013

Two weeks ago when AAPL was trading at around $450 a share. We noticed how the MACD was about to cross just at the same time that the slow stochastic indicator did. This trade had a good chance of playing out given that when the MACD is used along with the slow stochastic indicator to find a point where both cross over the signal line at the same time the stock usually makes a move in the implied direction within a short period of time.

We had said to start taking profits at the $470-$480 level, if you did that then your portfolio is a few percentage points higher.

The reason for this article today is to give you our thoughts on Apple (AAPL) today and about where its going.

While the MACD today still shows bullish sentiment is higher than bearish sentiment we think this thing will go back to where this move first began in order to test support in the short term. We advice you hedge by selling calls or shorting the stock down to that level. If AAPL does indeed retrace back to this point then the next thing to look out for is if it can hold it. There really hasn’t been a significant break over the longer term downtrend despite the nearly $30 move.

This is scary because if it can’t hold $540 then we’re probably heading lower. We will be looking at the chart later this month for confirmation of another move down.

Here are the charts as of now:

APPL analysis

AAPL 02/13/13
That was it for this post. Remember to not spend all your money gambling on the market and to buy your sweetheart something nice tomorrow on valentines day with this weeks profits.

This article originally published at The Street Options here