First up is
(AAPL - Get Report), which has been getting a lot of attention for the past couple of weeks, primarily because of the launch of the iPhone 5. While shares made headlines when they broke through the $700 mark, they didn't spend much time above that century mark. Now shares are looking a whole lot less positive, but I don't think that a big drop is a foregone conclusion.
Here's how you should trade AAPL this week.
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In short, Apple is looking like it's forming a well-known topping pattern: the head and shoulders. But there's a big difference between forming a head and shoulders top and actually triggering a sell signal. As long as AAPL can hold support at $660 the stock isn't in danger of getting hammered by selling pressure. The fundamentals are still strong in this stock, even approaching $700. For folks looking to buy, a move above $680 is a good enough signal that this stock can still catch a bid higher up.
I realize that strategy of selling a "bargain" and buying a more expensive stock may sound alien to a diehard value investor. But as a technical trader, it doesn't matter if a stock becomes more expensive as long as it keeps getting more expensive until you decide to sell.
adds some extra confidence towards an upside move -- RSI remains in a long-term uptrend right now. Until that changes, momentum favors more upside in Apple.
Apple also shows up on recent list of
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