As Apple Inc (AAPL) continues to bounce higher, investors are getting more bullish. As a pro, I am becoming more aware of the risks as Apple gets near-term overbought. I am starting to see the profit potential of short levels on Apple. The sell short level on Apple begins when it tags $293.00. There is a key gap fill at that spot and will have retraced about 75% of the down-move at that price.
The sell short level on Apple begins at the $293.00 level but has an additional add price if it tags second target of $312.75. This would be where I add my second half of the short position (if needed). While the odds of it getting to $293.00 are somewhat low, smart pros leave that room to add to protect themselves. Note the chart below.
(Click on image to enlarge)
Comments
Log in or sign up to join the conversation.