Why the Greek General Index is in wave 4?
November 27, 2012

APPLE has made a short term bottom at 623$. In a previous analysis we mentioned that a break under 655$ could lead lower to 620 towards. Prices moved intraday towards that level and closed marginally above the 635$ support. Despite having broken the longer term upward sloping trend channel, APPLE will at least try and come back inside that channel. A move towards 655-60 is expected. At the 660-68$ area, resistances will put the stock to the test. If broken upwards, then the longer term upward trend could be safe. If not, we will have witnessed a back test of the broken trend channel with targets towards 600$ or even lower. Above 668$, we have 675-81$ as important resistances and then 705$. Support levels are found at 635-30$.

Facebook has most probably completed an A-B-C correction. We would favour long positions when prices move above the downward sloping pitchfork with the last important low as a stop. Prices have retraced 61,8% of the 17,55$-23,37$ move. If the prices are to turn upwards again, then it should happen very soon. 17,55$ low should of course not break under any circumstance for bullish scenario to hold. Our trading will begin as soon as prices break upwards from the downward pitchfork resistance.

 

Thank you for taking the time to read my thoughts!!!

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.