Seeking Alpha

Brennan Basnicki's  Instablog

Brennan Basnicki
468 Followers
0 Following
Send Message
Proprietary Trader at DV Trading, level 3 CFA and level 3 CMT candidate, MSc Investment Analysis with distinction, and B.A. politcs. Most importantly, I am a student of the markets, and far from considering myself an expert. Having began trading in 2008 I am very critical of the investment... More
My company:
Macros Matter
My blog:
Canadian Coalition Against Terror
  • Apple Uptrend Over? 2 comments
    Dec 2, 2012 2:35 PM | about stocks: AAPL

    Quite a few indicators are suggesting that the previous bull market in Apple (AAPL) may be over:

    1. First time RSI has broken down below 30, could be a sign of trouble to come
    2. Last week the RSI could not get over 55, again signaling an end of the bull market
    3. Significant resistance in the $595 - $610 price range; corresponds with previous support and resistance levels as well as the 200 day SMA
    4. Bounce from the lows two weeks ago has been on diminishing volume
    5. Longer term, we can see divergence in both the MACDs and OBV, neither of which confirmed the September highs
    6. Stochastics show Apple to currently be overbought
    7. A small doji evening star / island reversal seem to be establishing a short term top

    (click to enlarge)

    Conclusion: Likely need to be bearish until Apple breaks above $610 on significant volume and new uptrend is seen in RSI readings.

    Disclosure: I am short Apple, however my time frame is relatively short, typically a couple days to a couple weeks

    For more intermarket and technical analysis, click here

    Brennan Basnicki

    Disclosure: I am short AAPL.

    Themes: Short ideas, Technology Stocks: AAPL
Back To Brennan Basnicki's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

This post has 2 comments:

Track new comments on this article
  •  
    Looks like you called this one perfectly.
    10 Dec 2012, 05:01 PM Reply Like
  •  
    It was a good one, thank you. Actually took a small long today, not sure I like it though; have a very tight stop at the moment. Was hoping for some follow through after it closed the gap; no such luck!
    10 Dec 2012, 05:14 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • Please note I use StockTwits for stock talk, trade ideas, and short term analysis, but post longer thoughts/articles here on SA
    Apr 28, 2013
  • Bull Flag Mania in Energy ($XLE): $SLB $TLM $APA $OXY $CVX
    Feb 9, 2013
  • When I start logging multiple red days I know I'm overtrading... Time to refocus
    Feb 7, 2013
More »

Latest Comments


Most Commented
Posts by Themes
Coal, commodities, Copper, earnings, Energy, Equity , gold-and-precious-metals, Long, long-ideas, market-outlook, Metals, Precious Metals, short, Short ideas, Short Ideas, short-ideas, Social Media, Solar, Tech, Technology
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.