APPLE: simple correction or start of new downward move?

S&P market update
November 8, 2013
Gold analysis for November 11
November 11, 2013

APPLE yesterday has broken short-term support and made us re-evaluate the possible downside scenarios and what should watch out for. Opportunities are ample for trading both the downside and upside so we should be flexible and follow the trend. Currently prices have broken the Ichimoku cloud support and the upward sloping trend line in the 1 hour chart.

aapl60m

According to the above chart we are bearish with 525$ as stop. The above chart shows that prices could free fall until the 490$ price level at least where the previous consolidation area is. However if we look at the daily chart we could see a bullish alternative for APPLE that sees its price reaching 550-570$.

aaplD

On the daily chart shown above we can clearly see the upward sloping yellow channel. We have drawn a parallel of the line that connects wave 1 and 3 and started it from wave 2 in order to see where wave 4 could end. Prices have corrected 38% of wave 3 up and the downward correction is possible and valid according to EWT to even reach the 504$ or 50% retracement exactly on the lower channel boundaries.

aaplw

The weekly chart above shows that prices have reached the 50% retracement from the highs. If APPLE is in its final corrective wave up or in a new upward move, we should expect the current wave to unfold and complete 5 waves up from above 504$. So this level could be used for stop for Bulls. Important resistance level as shown in the weekly chart is the 569$ level where the 61,8% Fibonacci retracement is. So the next couple of sessions are important for APPLE regarding its intermediate term trend. It could target 570$ and higher or confirm a top and start a new downward move towards 400$. For more updates and analysis, become a member today. You will get detailed analysis and trade setups on major fx pairs, commodities and indices.

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.

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.