The question comes up from several members as to whether the rally in AAPL up to the neckline "zone"around the 500 level is shortable. If the question is really whether we can determine for certain that the stock will fail right here and reverse at the neckline, then we can only say that we have no idea. However, if one wanted to try and short the stock on this rally up into the neckline, then of course that is a reasonable trade, but one would have to use a reasonable stop, perhaps at the high of Monday's gap-down day at 507.50. Snap-back rallies up into a neckline of a head & shoulders formation are not uncommon, and so a short-sale into this rally is feasible, but a successful result is not guaranteed and one would need to adhere to their stops in any case.
SSS - Shorting Apple (AAPL) at the Neckline
| Published: | 16 Jan 2013 16:28 ET |
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