Berger Goes Short Apple
The following is a note from The Steady Trader's Serge Berger.
I just sold short (shorted) Apple Inc. (NASDAQ: AAPL) at $121.55.
My base case remains that the broader market corrects in coming weeks/months. Given Apple's large market capitalization it is nearly impossible for this stock to hold up if the broader market corrects.
On the weekly chart: AAPL had a bearish outside candle last week just as Bollinger bands are tightest since March 2014. Upside momentum continues to make lower highs too...nothing new there.
On the daily chart note that the four tops so far this year all resulted in quick bearish reversals/rejection of those highs.
Support (previous resistance) now comes in at the 200 day moving average (red line), which coincides with horizontal support (black line) all around the $120 area. Given the wide following and large market cap of this stock, a break of a psychologically important support level like this could accelerate the downside press.
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