Chart Request: Apple Computer, Inc. (AAPL)

I got this message about Apple on Monday night but since I couldn’t upload charts yesterday I’m just now getting to it:

I have a request for your chart view on AAPL. I feel it’s currently overbought at short term based on 14 period RSI. Though, Bank of America upgraded it today. What’s your view on the stock?

It’s most definitely overbought but as we know overbought can stay overbought on trending stocks. Everybody and their sister is looking for a dip to buy Apple, and because of that simple fact you may not get a significant dip any time soon. (It’s the market’s job to frustrate as many people as possible.)

Assuming you want to be long, the trick is to find a good risk/reward spot to jump in. I’d probably just wait for stochastic to reach (near) oversold before trying to buy it. But there are some logical spots to get long above in the chart. Right now you could “lean against” the 200-day moving average by putting a stop just below that line.