AAPL and FB update

 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.

S&P finishes wave C

Our most possible wave count regarding S&P is depicted in the chart we post today. It is most possible that this index is finishing the corrective wave C and most probable bottom level is the 61,8% retracement at 1426. This area will provide a good bounce back upwards for S&P. I believe the correction will end here. If further downward movement breaks those level, bulls should start to worry about the longer term trend. The last stand will be at 1397, but any move close to that level will increase the chances of a break of 1397. All in all, we stated many times before the sharp decline that bulls should be very cautious of an impeding turn around. Now it is time for bulls to feel more comfortable around the 1725 support level. The pattern of the decline could very well be corrective and soon if not already finished. Another leg up I expect to follow.....

Thank you for reading my thoughts.........

EURUSD breaking downward trendline

EURUSD is showing signs of trend reversal. It has first found support at the upward green trend line and is now breaking the red downward sloping trend line. The structure of the decline looks corrective as the overlapping pattern is not a characteristic of impulsive waves.

Our most possible path to follow now is upwards towards 1,30 at first. The pair has just moved above the resistance  and must stay above it in order for the upward move to continue. The rise from 1,2829 lows looks impulsive and this could develop into something bigger if we look at the bigger picture as depicted on the first chart. A pull back towards 1,2870-90 could be possible if the first upward wave has finished at 1,2928.

As always the structure of each move is important to determine whether it is corrective or impulsive.

Concluding, today we may have seen an important bottom in EURUSD. We are in favour of long positions with risk limited to today's low.

Has S&P topped?

In several previous posts I suggested that bulls should be very cautious with their positions. Premium service members were alerted to cover long positions on time. The market was unable to overcome 1467 and naturally retested the 1452-50 support. The index could still have a little lower levels to go, but all in all our view is that this downward move is still corrective. This corrective wave could end near or at the 61.8% retracement. My view is that it is going to end between 1435-1426. If 1426 is broken then this would be an sign of further weakness. Strength on the other hand will be signalled if the market breaks the red dotted downward sloping trend line that we back tested today. 1397 level is very important as far as the medium and longer term trend, but at this point I think the chances of that level being broken are very slim. 

QE3 enthusiasm is finally settling down and investors who bought due to the announcement are now selling with anxiety. The market as always has discounted the announcement. 

Thank you for taking the time to read my thoughts.

EURUSD intraday analysis

EURUSD has been falling steadily from 1,3170 and trades below the red downward sloping trendline. The decline looks corrective due to the overlapping of the waves after a clear impulsive upward move. 1,2950 is important short term trend resistance as the previous 1 hour high and the downward sloping trendline meet. 

Our view is that a break of that resistance level might start a new strong upward move with target above 1,32. However at first the pair should show impulsive characteristics in any upward move and secondly it must be strong enough to break 1,2950 and 1,3050 resistances for a new high to be achieved.

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