Back on December 18 we alerted readers
that our proprietary countertrend indicator reached an Oversold level on Apple
(NASDAQ:AAPL). This was the first Oversold reading since the 30% slide in the stock. The stock is still technically very weak and rated a Strong Sell. If traders got long on this countertrend trade, we would suggest considering a mean reversion trade approach as long as the name remains a Strong Sell. Right now the stock is about .70 to .80 standard deviations below the 50-day moving average depending on the open. We would look to reduce exposure and take profits once the stock reverts to the mean.
For long-term investors who are not looking to trade the stock, we would wait for a Buy signal or 4 Rating.
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To learn more about ChartLabPro's algorithm visit www.chartlabpro.com.
No positions in stocks mentioned.
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