Short-Sale Set Up - Apple (AAPL) 11-15-15

Published : November 15 2015 at 15:29 ET

Apple (AAPL) is breaking down within what is now a "big-head" head and shoulders type of formation, as can be seen in the weekly chart, below. We can see that the stock failed on a late-stage breakout attempt back in late July, and has since been able to rally all the way back up to its 40-week (200-day on the daily) moving average. Note that AAPL stalled on light volume right at the line.

This week's breakdown through the 10-week line puts the stock in play as a short-sale using the 10-week line at 114.79 or the 50-day line at 114.43 as a guide for a tight upside stop. Alternatively, if AAPL were able to bounce back up through the 10-week/50-day moving averages, we would look to short it on a rally back up towards the 40-week/200-day moving averages. 

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