I am preparing to short (buy PUT option) Goldman Sachs (GS) & Apple (AAPL) if the charts pattern are confirmed bearish.
Goldman Sachs (GS) appears to be forming a Head & Shoulders pattern. I am waiting for the right shoulder to be formed. The stock has been on the up trend since Mar 2009 and is due for a healthy correction. The 50D MA provides a very strong support line as the stock price bounced back twice in beginning of July and early Sept.
Things to watch out for GS:
- Whether the right shoulder is formed?
- Can the stock price breakdown the 50D MA support (probably concides with the neckline if H&S pattern is formed)?
Apple (AAPL) broke the 20D MA with a long bearish candle last Friday. The long term channel resistance which also coincides with its 50D MA trend line at about $185, is a critical support. Falling below this support could start the correction and see the price fall to $158.19 level (61.8% Fibonacci Retracement Level). Both MACD and RSI are bearish. MACD had confirmed its dead crossover and RSI broke its support trend line.
Whether the stock price breakdown from the long term up trend channel resistance?
After the support is broken, whether AAPL can move back to the channel (i.e. the channel support become very strong resistance to prevent AAPL to move back to the channel)?