Apple Inc. (AAPL) has a lot of work to do to build new demand in the $420.00 – $480.00 area. Technically, AAPL is in a daily and weekly downtrend. If it can clear over $485.00 and hold that area as new demand, I would consider a long. Until then, I would short any bounce with price rejection into $480.00 – $485.00. A bigger downside target on AAPL into $360.00 could be in the cards.
KEY LEVEL
Supply exists at $485.00 until it plows through and becomes new demand. Demand exists at $420.00 but a break of this low will washout allot of bottom feeders. Everyone has such a strong emotion about AAPL because it paid for years on the long side but technically the damage is done until repaired.
THE TRADE
Short any bounce into $480.00 – $485.00 with price rejection confirming. Target: $420.00. Take off half and trail second half breakeven for a break and downside into $360.00.
See Troy’s previous posts on AAPL’s fall from grace:
Apple: Gap Outlines A Short Play
Apple: America’s Darling Etched A Bearish Gap
