Our view in APPLE suggests we should start considering long positions as a good upward bounce may be at its beginning. Prices have moved upwards in an pattern from 382$ to 463$. A three wave downward decline has followed to 398$. Below you can see the daily chart of APPLE.
The downward sloping blue trend line from 700$ highs was broken and is now back tested by the corrective pull back. Prices have reached 18$ from the recent important low at 382$. We believe that if that low is not broken, prices will start gradually to move higher. We plan to enter a fraction of our position and add along the way as prices break above resistance levels. Of course different investors have different strategies, but we prefer to add to our positions when supported by the price. If resistances break we will add.
Important price level to watch out for is 382$. We do not want prices to fall below that level. If this happens we will probably see a move towards 320-300$. Upside resistance levels are found at 417$-427$-435$-457$. Breaking above one level will increase the probability of the next being broken. Target for the expected upward move in this stock is found at 500$ and 540$.
As always, thank you for taking the time to catch up on my thinking.