Tuesday, May 04, 2010

Apple, Inc. (AAPL) Breaks Down From Its Symmetrical Triangle

The other day I posted about the symmetrical triangle that was developing in Apple, Inc. (APPL) on the 60 min time frame. Well today AAPL broke down from this triangle formation triggering my short entry on the open.

In all honesty I wasn't that impressed with AAPL as a short for the following reasons. The stock failed to make a new low in the afternoon with the rest of the market.  Apple, Inc. is also approaching a significant gap which may provide support limiting the stock's downside. Last but not least, AAPL has been the driving force behind the advance in the NASDAQ and I really don't feel comfortable being short such a stock.

At the close I chose to cover half my AAPL position leaving the other half just in case the stock continues heading south. My protective stop for this stock is right above today's high.

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