Dollar strength, S&P weakness?
February 14, 2013
DAX and IBEX balancing on a rope….
February 17, 2013

Today we focus in one of the most popular stocks traded. The share price of APPLE has managed steadily but slowly to crawl back towards the levels before its earnings announcement. The pre-earnings low was 480$. After the earnings, prices fell as low as 432$ and managed to bounce back up towards 484$. We believe this counter trend bounce is still in play and far from over. Our short-term target is 500$ where the longer term trend line, as shown below, stands as the first big resistance level.

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however have to be cautious as this move is most probable counter to the bigger trend that is still down. This means that prices could break down fast and any time. Our short-term view is depicted in the chart below.

aapl60m

In this case we use as support the and as long as prices trade above 463$, we have a new high above 485$ as our first target. Traders with higher risk tolerance could use 459$ or 439$ as stop levels. For more help trading this stock, don’t hesitate to contact me.

As always, thank you for taking the time to catch up on my thinking.

A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.

The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.

Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.

A chart used in technical analysis that shows support and resistance, and momentum and trend directions for a security or investment. It is designed to provide relevant information at a glance using moving averages (tenkan-sen and kijun-sen) to show bullish and bearish crossover points. The "clouds" (kumo, in Japanese) are formed between spans of the average of the tenkan-sen and kijun-sen plotted six months ahead (senkou span B), and of the midpoint of the 52-week high and low (senkou span B) plotted six months ahead.

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.