After the announcement of the new iPhone 5, AAPL has managed to climb above 700$. At that time, when the stock price was around 660$ we issued an intraday update targeting at least 690$. Members took profit of at least 30$ when AAPL broke support levels. Now we find this stock near support levels once again, only this time if support does not hold, then a short position could be very profitable. APPLE is still trading inside the longer term upward channel as depicted in the chart above. Support levels from the channel and previous bottom price levels are found in the area of 655-640$. A clean break of that support will open the way for a much bigger correction. This could prove another good opportunity to enter this stock, as stop levels are close by. If you feel comfortable with some extra risk you could also sell short if support levels are broken. Concluding we see another opportunity at these levels for a buy in AAPL, but investors must be ready to pull the trigger and get out of their positions if prices break support levels.
We come back to Facebook after a long time. Facebook seems that it has made 5 waves up from 17,55$ to 23,37$. A 3 wave correction has ended at 19,80$ and it seems that is heading towards 24-25$ at least. This move could just be a 3 wave upward correction in response to the decline from 33,45$ to 17,55$. Nevertheless with a stop at 19.80$ investors could profit from a possible upward continuation towards 24-25$.
Once again, thank you for reading my posts.