APPLE has managed to make a big upward move from 386$ to 514$ and is currently pulling back near 490$. The upward trend according to our Elliott wave and technical analysis is over and the entire upward pattern is complete. Prices have moved upwards in an pattern from 386$ to what we can label as wave C of wave 4, implying that we anticipate a new downward wave to push prices to new lows. In the short term we observe prices to have broken out of the short term upward sloping channel.
We expect prices to at least push as low as the 38% Fibonacci retracement at 464$. This is our first short term target. If prices move downwards in an pattern, then it could be justified for prices to continue lower towards another Fibonacci support and ultimately test th Ichimoku cloud critical level at 410-420$.
In the 1 hour chart as shown above we expect prices to find resistance at the 500-510 price range. More upside potential will be possible if prices manage to break and close above the red resistance zone. Target for any bullish break out will be 540-560$. We favor the bearish scenario that has 470-460 zone as first target. Our longer term view is cautiously bearish as long as prices trade below 510$. As always, for our favorite scenario to have increased chances, we would like the support levels at 449$-434$ to fail. Breaking below these levels will most certainly push prices to 410-420$. For more help trading this stock and for more profitable trading opportunities become a subscriber today.
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