Apple ( AAPL) is in unfamiliar territory right now. That's because it's not a bearish setup to watch this week. Instead, Wall Street's most-hated tech stock is actually showing signs of a reversal in shares. Here's how to trade it. >>3 Big Stocks on Traders' Radars Right now, Apple is forming an inverse head and shoulders pattern, a bottoming formation that indicates exhaustion among sellers. After the 20% capitulation in shares this year (that's 35% market underperformance, mind you), it's no surprise that sellers are getting a bit exhausted at this point. The inverse head and shoulders is formed by two swing lows that bottom out at approximately the same level (shoulders), separated by a deeper trough between them (the head). The buy signal comes on a breakout trade above the neckline, currently at $460. From a momentum standpoint, the uptrend in 14-day RSI still looks constructive. Despite a dip below the trendline on AAPL's April selling, the uptrend resumed quickly. Since momentum is a leading indicator of price, that's a good signal. I'd still recommend keeping a tight stop in place if you're anything but a super-convicted buyer here. The 50-day moving average has been a good proxy for support; I'd put a stop just below it.