APPLE has been falling since we gave a sell signal at 548$. At 548$ Apple had broken the upward sloping trend line support and had reached the Ichimoku cloud resistance. At that point we posted our analysis through twitter expecting prices to turn downwards towards the 61,8% Fibonacci retracement of the rise from 490$. Now APPLE has reached this price level and we feel that if the downward sloping trend line at 522$ is broken upwards a low could be confirmed and a reversal towards the 533$-540$ price level could be next.
We expect prices to stage an upward reversal towards the Ichimoku cloud and between the 50% and 61,8% Fibonacci retracement of the decline from 551,19$. 512$-515$ price range is important support and I expect the reversal to come from this area. A buy signal will be given once prices break above 521$ and above the trend line resistance. The first short-term resistance will be the price range 527$-529$.
All in all our longer-term view remains bearish as long as prices trade below 571$. I believe it is more probable to see another rejection and lower high near 540$ before a sharp downward move that will break the low at the 38% retracement. The end of the downward correction that started at 571$ I expect to end near 450$. If you want to see my trades real-time become a member today.
As always, thank you for taking the time to catch up on my thinking.