Here’s how I would trade Apple (AAPL)

Discussed in this article: Apple Inc. ( $AAPL )

I want to look at Apple ( NASDAQ:AAPL ) today. A lot of stocks went up today, a lot of stocks went down, tech mostly went down. Apple ( NASDAQ:AAPL ) released their new tablet today, or they told us what was going to be in it and that was fine, but the stock didn’t really do much, in fact it traded in a wider range than it did the prior day. Not exactly a bearish engulfing pattern, the stock just basically closed flat, but still this is the first time in quite a while that this stock has had a down day and it occurred on heavy volume so there something happening here.

Also, just look at how far this has come, 15 percent since this last low. So 15 percent on some tech stocks isn’t very much, but for Apple ( NASDAQ:AAPL ) it kind of is because the bloom came off the rose. But here’s how I would trade this thing; the company announces earnings on October 28, so that six days from now. Just draw a line down here, you can go 490.00, I would say this though, I would look at $500.00, if Apple ( NASDAQ:AAPL ) happens to pull back, let’s say we get a weak day, I would want to buy this stock at anywhere below $500.00.

If you are an Appleonion, if you want to buy this thing, know that you roll out here, you can see that the stock is have this double bottom, it’s in this consolidation phase here, but I’ll ask you a question, if we look at this sales price, where it’s selling out right now, do we really think that Apple ( NASDAQ:AAPL ) will absolutely not fill this box, that it’s just going to completely keep going, never pull back? I don’t think so, there’s no catalyst for that.

So even if Apple ( NASDAQ:AAPL ) were to roll up tomorrow, let’s say it moves a little higher, again, don’t you think at some point Apple’s ( NASDAQ:AAPL ) going to come back into this box? That’s when I would want to be buying this thing. If it does keep moving, let’s say it just keeps moving into earnings this is going to set up to be a sell the news, I’m just telling you, if it keeps moving into earnings. If it does not, if it does correct giving you a chance to buy it under $500.00, then you could get a buy the earnings situation.

So we’re at a little bit of an inflection point on Apple ( NASDAQ:AAPL ), but I’ll just say it again, the takeaway is this, if you can get it below 500.00 then go ahead and do so. Just look at this area down here, right here, as your reference for trend line.

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