Trade Update (SHORT AAPL): Our January 21th Short Signal on AAPL has Hit First Take Profit Target at $305
Hello traders, Our January 21th Short Signal on AAPL at $318 has Hit our First Take Profit Target at $305 and we collected 13 points run. Earnings announcement on the 28th after market close cause some volatility yesterday as earnings were good and beat analysts expectations by 10%, reporting a $4.99 EPS vs expected $4.54 EPS. If Post earnings AAPL will trade over 326.0 on a closing basis, then it would be wise to close the trade while its still profitable. However, we still believe that the overall market condition will have an effect on AAPL as well and there is still potential for price to come down again. Therefore, this trade is still good for new traders looking for a fresh SHORT position as well as current position holders. Our Second Take Profit target is at $296.0. AAPL is trading at $324.0 now so we are looking at a potential move of 28 points for a new short position.
January 21th signal: Apple (AAPL) stock rose by 123% since January 2019 and is a strong performer when it comes to earnings report, however consider broader market is on the overbought side with the headline risk coming from China related to the new deadly pneumonia virus spread, we believe this is an opportunity for a quick SHORT trade allowing AAPL to correct some of its recent gains. In addition Apple dropped plans to let iPhone users fully encrypt backups of their devices in the company’s iCloud service after the FBI complained that the move would harm investigations, as indicated by Reuters today; this is not good news for AAPL users.
This trade has a short term overlook and the trade suggested should be considered as such; if AAPL continue to move up and close over $320 then the trade should be closed!
To jump on this quick opportunity, Short AAPL at current $318 level and look for First Take Profit target at $305. Protect the trade with a STOP LOSS at $320