APPLE wave analysis shows weakness ahead

S&P reactions to NFP
March 7, 2014
S&P remains supported
March 11, 2014

The last couple of weeks we have posted a couple of analysis regarding APPLE shares. Near 550$ we warned bulls that a break of 548$ would confirm the end of the upward move from 490$ and that 515$ would be the most probable target. After reaching our goal at 515$ area, we posted a new article expecting an upward bounce that could bring APPLE shares between 535-540$. This upward move we now believe it has finished at 534.75$ with bulls not being strong enough to challenge the short-term downtrend. The rise from 515$ is not impulsive. The rise from 515$ is most probably another corrective wave part of wave C we expect to unfold towards 450$.

AAPL60m

In the 60 minute chart as shown above, the short term trend is neutral to down as long as prices stat bellow 551$. Short positions are to be favored and if the recent low at 515$ is taken out, we should anticipate a test of the lows at 490$. Wave B has finished and I believe we are already in wave C down that will complete the wave 2 correction after the upward leading diagonal as shown in the chart below.

AAPLdaily

The daily chart shows us how prices are testing the Ichimoku cloud resistance and a break of 515$ will commence another phase of lower lows and lower highs that I expect will bring us closer to the longer term target to buy APPLE near 450$. For now my view is bearish for the short- and intermediate term trend. I will be looking to buy APPLE again below 450$ expecting a big upward reversal and a new upward impulsive move. If you want more detailed analysis and want to see how I trade APPLE, become a member today.

As always, 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.