Sell: Apple $AAPL Hits Key Level

Shares of Apple Inc. (AAPL) tagged a major trend line connecting the last three pivot tops going back to April 2019. This likely means near-term resistance and a level to expect a pull back. I grabbed some $AAPL puts and added a swing short. While the line is getting pierced, it should not matter. Multiple metrics signal overbought. Add in the chart level tagged, the robot in me pulls the trigger.

Apple has been on a serious bull run as trade war relations have warmed in recent weeks. The stock was trading at $192 in early August 2019 and now sits above $225.00. Investors are banking on President Trump willing to give in on the trade detail to help his re-election campaign. Thus Apple nearing its all-time highs again. However, I am not sold on that and expect more hiccups before it is settled.

Based on the stock chart hitting the key trend line, I am expecting a pull back on Apple to $215.00 near-term. This is where I would likely take profits on my puts. I plan to hold the swing trade for a bigger move lower to $180.00

Gareth Soloway

InTheMoneyStocks