Friday, 27 July 2012

Will AAPL fall from the tree?

Apple’s sales for the third quarter missed estimates due to weakness in European economy and a pause in iPhone sales ahead of the release of a new version. Following the dissapointing third-quarter financial results, AAPL has dropped to 570$ after the announcement.As depicted in the chart, AAPL is right on its longer term support. The rise from 522,18$ to 620$ does not look impulsive. This move could very well be an X wave. This corrective pattern will end with another downward movement towards 500-450$. The first sign would be the break of the support lines (gann fan and pitchfork). This could coincide with our bearish views on S&P as posted in my blog. Concluding our view is that 567-570$ level should hold if AAPL is to move higher both in short and intermediate term. This price level can also be a reverse point for ones' position as it can accelerate pressures towards 550-520$.

Thank you for taking the time to read my thoughts.

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