Apple Could Be Ripe for Reversal

The current daily chart of Apple (AAPL) looks a little ill technically. It's currently trading below the 200- and 50-day simple moving averages, and the stock is also in a "sell mode," with the five-bar exponential moving average hanging below the 13-bar EMA. So why would I start stalking a countertrend buy setup in this stock?

Apple (AAPL) -- Daily I Source: Dynamic Trader View Chart » View in New Window »

Well, for starters, there's the upside-down head-and-shoulders pattern that many technicians are discussing. I do see that formation, and I believe this scenario could potentially play out in the coming months. In addition, the stock is testing a key support decision that comes in between $395 and $408....376 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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