APPLE in trendless trading range

Τεχνική και κυματική ανάλυση του Χρηματιστηρίου Αθηνών.
October 7, 2013
SPX expecting selling pressures to continue until Friday close
October 10, 2013

APPLE shares are trading within a sideways range between 510 and 470 for some time now. The initial drop after the announcement of the new iPhones pushed prices towards the 50% retracement of the rise from 386$ to 513$. Prices since then are gradually moving upwards but the price formation is far from impulsive. Nevertheless support levels are held and the trend is mostly sideways than up.

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In the daily chart as shown above, the Ichinoku cloud is providing  support at 480$ price level. Short term trend remains up. Short term resistance is found at 500-510$ and it is being challenged for a second time after the announcement of the progress of sales in the 1st weekend it was sold. The decline from 513$ is not a clear impulsive move so we have a price pattern with overlapping waves and no clear direction but with price boundaries that clearly show which levels are support and which are resistance.

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The 500-510$ price level is very strong resistance for the longer term trend in APPLE. Breaking above this level would open the way for an upward move towards 600$. Another rejection at that level will push prices towards the support at 480$-470$. Breaking below that level will open the way for another decline towards 440-430 where the 61,8% Fibonacci retracement is. The Ichimoku cloud in the short term chart shown above, provides support at 478$. Breaking below 470$ will start a bearish pattern of lower lows and lower highs that will reinforce the bearish trend.

Thank you for taking the time to catch up on my thinking.

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.