Last, but certainly not least, is Apple (AAPL). The tech giant has been the stock everyone loves to hate in the last six months and change, but early signs show that the selloff could finally be coming to an end.
Apple's selling hasn't quite been the panicked frenzy to unload shares that many investors feel it has. Instead, the decline in Apple's share price has actually been pretty orderly. Shares have been held lower by a strong trend line resistance level since late September, but this week's breakout above resistance is signaling a change in trend.
Since the 50-day moving average has been a pretty good proxy for resistance since October, I'd still recommend waiting to see a move above the 50-day before putting cash back into this stock. The higher confirmation level will mean ceding a few points of possible gains, but it'll also dramatically reduce the risks of getting caught in a bull trap. Momentum, measured by 14-day RSI, is adding some extra confidence to a bullish signal in AAPL -- it broke its own long-term downtrend last week.If you're looking for a bargain entry in Apple, a move through the 50-day is a reasonable way to get in with minimized risk. Just be sure to keep a tight stop in place if you don't want to own shares longer-term. To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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