Thursday, 17 May 2012

AAPL targets 530$

 APPLE broke 555$ and bounced from the middle pitchfork support. As mentioned in previous posts, 555$ should not have broken for bullish scenario to remain intact. However this break was expected to happen as the stock retraced too much. Now the road is open to reach 530$ and why not lower.
From an elliott wave perspective we are most probably in a C wave down towards 530$ first target where wave C equals wave A. Both lower pitchfork support and gann fan support lies at 520$.  At 505$ area we have the 50% retracement support and at the area of 470-480$ we have the 200 EMA, 61,8% retracement and A*1,618=C. However this is a scenario where the decline from the April highs is corrective. First important resistance now is at the area of 570$-575$ where the 50 EMA is and the previous high before the new low. Shorter term resistance is at 553$ at the upper pitchfork. Bearish to neutral is the my view in this stock. Above 575$ I will change.

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