Courtesy of David Grandey of All About Trends
With Friday’s rally, the indexes remain overbought, closer to resistance than support.
On Friday (3/22), we initiated a short sell trade in Apple Inc. AAPL is overbought and flirting with its 50-day moving average and downtrend line — a move made on light volume. Often, when a stock is locked in a downtrend, it will return to the scene of the crime to retest its low. AAPL hasn’t retested yet.
We shorted 20 shares of AAPL at $461.30.
We also added a new name to the LONG watch list: JIVE.
JIVE is in a confirmed uptrend (shown by the green lines) that is pulling back to support at the 50-day moving average with additional support shown by the blue lines and the bottom of the uptrend channel. This is what we call a Pullback Off Highs pattern — the only pattern we need to know to buy leading stocks in confirmed uptrends at low risk entry points.
A break above the pink line triggers a long-side trade.
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