The Apple (AAPL) trade setup has been extremely intriguing to me over the past few days.

There is a clear base that has formed over the past couple of weeks. And if this stock manages to drop below $92 which not only represents the August lows that everyone thought at the time was unreal and insane, but also represents the area that the stock bounced from in January and again this month. If that price level breaks, there will not only be major problems for the stock, but there will probably be a major correction taking place in the market as well. 

You also have a nice convergence of price with the 5, 10 and 20-day moving averages right at or below the current price. When you look at overhead resistance should this stock manage to break decisively out of its base, you have then very little that gets in the way of the breakout level and $107 on the chart. Granted, the market will have to engage in a massive rally in the process that takes price as high as 2040 or so. Which isn’t impossible but too early to predict the possibility of such a price move taking place. Instead, I prefer to take this market just a day at a time, and let current price action dictate what I will do for the day at hand. 

Oh, and it is worth noting too the declining trend-line that still remains unbroken. Breaking the downtrend might be all this stock needs to jump start the price action.