Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Apple Is Approaching Oversold

By

Advice for short-term traders and investors in the tech stock.

PrintPRINT
MINYANVILLE ORIGINAL This morning we finally got an Approaching Oversold reading for Apple (NASDAQ:AAPL) at $525. Now let me stress the fact that our countertrend has three levels: 1 - Approaching Oversold, 2 - Oversold, and 3 - Extremely Oversold. Year to date, I have only seen one stock at Extremely Oversold levels and that was Advanced Micro Devices (NYSE:AMD). Can we get to an Oversold level? Yes, but we think this is now (at $525) a high probability trade off of this level. Short-term traders: Use a tight stop off the $518 level. Investors: Only start with ¼ positions and never allocate more than 5% of your total investment account to one position.

Below, we have added an example of one stock that hit an Approaching Oversold level -- Chipotle Mexican Grill (NYSE:CMG) -- and about 4% lower than that, it hit an Oversold level. So please keep in mind that Apple is not Oversold; it is only Approaching Oversold. This can be used for investors looking to scale in at $518.

Apple

Click to enlarge

Chipotle Mexican Grill


For more from ChartLabPro.com, click here.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE