The question comes up from several members as to whether the rally in AAPL up to the neckline "zone"around the 500 level is shortable. If the question is really whether we can determine for certain that the stock will fail right here and reverse at the neckline, then we can only say that we have no idea. However, if one wanted to try and short the stock on this rally up into the neckline, then of course that is a reasonable trade, but one would have to use a reasonable stop, perhaps at the high of Monday's gap-down day at 507.50. Snap-back rallies up into a neckline of a head & shoulders formation are not uncommon, and so a short-sale into this rally is feasible, but a successful result is not guaranteed and one would need to adhere to their stops in any case.
SSS - Shorting Apple (AAPL) at the Neckline
|Published:||16 Jan 2013 16:28 ET|
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.