Monday, May 27, 2013

AAPL 05/27/2013

Since reaching an all time high of 705.07 last September, AAPL fell nearly 50% to 385.10, before rebounding to 465.75. It appears that AAPL is in a long term downtrend, which is only partially completed.


The initial move from 705.07 to 505.75 can be seen as the first impulse wave down. I see the rebound to 594.54 as Wave A of an inverted corrective wave. Wave B carried AAPL down to 385.10, and was followed by Wave C to 465.75. This count implies that we should next see Wave D lower, before another rebound comparable to the 90, and then 80 point rebounds we saw for Waves A and C. That would complete Wave 2 from 705.07, and require Waves 3, 4, and 5 to the downside. The next target for this count would be near 318.

The other possible count would be that Waves 1, 2, 3, and 4 have completed to the downside, with one more move down needed to complete the sequence. The Wave 5 low for this count would be near 280. This count would also project Wave 3 of 5 to complete at 318.

With both counts suggesting a move to the 318 level, that would seem a likely next stopping point.


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