Long term I think that AAPL has shifted to a bullish trend, but after today's bearish engulfing pattern, I don't think there is any reason for traders to hold it long. It looks like we're going to retest the $500 level. That will be my first entry. I'll buy a small feeler position around $500, ideally after it breaks below quickly, I'll put a buy stop back over $500. That way I don't get in front of a bear train, if it really is going to break below $500, but I am also able to get in at $500 if it was just a stop run.
The stop for that small starter position would be a break below $480. Assuming everything goes according to plan, I'd look to add more over today's high of 539.25. Target for the trade is 571.3/571.4 where both fib extensions converge with a decent support/resistance line from mid 2012.
The stop for that small starter position would be a break below $480. Assuming everything goes according to plan, I'd look to add more over today's high of 539.25. Target for the trade is 571.3/571.4 where both fib extensions converge with a decent support/resistance line from mid 2012.