The Crabapple

The AAPL (Apple Inc) stock performance over the past several months has been incredible – for those that are/have been long. For those trying to catch a top and short the stock, incredible is not the word they likely would use.

Crabapple comes to mind, a small sour fruit.

Here is a Weekly chart to put this most recent move in to perspective:

In the chart above, you can see that there is a case to be made for the stock being “overbought”, “extended”, etc. The RSI is above 84 and price is really extended above the rising 50 day simple moving average. If you are long, be prudent here with your stop. If comfortable with Options, put on a Collar to protect against any significant downside move.

Trade ’em well.

Source: Wikipedia

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