The Bottom Line:
The current weight of evidence suggests that the bias has shifted to the downside in Apple on an absolute and relative basis.
If you’re looking to be aggressive on the short side, the risk is well-defined, or you could simply utilize this information to shift your bias from bullish to a more neutral stance on Apple stock.
What would be most constructive for Apple on an absolute and relative basis is a correction through time. If prices can continue to consolidate over the next several weeks and months, then AAPL can work through the overhead supply in a healthy way before continuing higher. I think that is the lower probability outcome, but I’m staying open minded and will adjust my view as the weight of evidence changes.
As always, if you have any questions feel free to reach out to me on Twitter and I’ll get back to you as soon as I can. Thanks for reading.
Twitter: @BruniCharting
The author does not have a position in any of mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
