If it were any other stock, I’d take a stab at shorting AAPL right here, right now. Technically, it shows signs of losing steam and is a good “pioneer short trade.”
We see negative divergences in both RSI and Stochastics. Price is making new highs while the two indicators are not. On top of that, volume has been declining as price floats up to new highs, rather than decisively showing strong price breakouts and accumulation.
I love this setup. Not only does it offer a good edge, it also offers a good reward to risk ratio. You can set a stop just above the highs and place a target at support.
So why am I hesitant? One, the market has been resiliant and bucking many technical signals. Also, AAPL has been doing the same.
I’ll probably spend the rest of the day thinking long and hard about shoring AAPL. I’ll update you if I pull the trigger.