So Apple... What i love most about it is the fact that it is not correlated to the american market, which is great cause on a bad day when my Dow stocks are down, Apple might give me some relief.
Now, let's talk about the stock, not my emotional problems. The big picture for me is the AB=CD leg and the double top. I have seen more AB=CD patterns in the past on Apple, so I am extra confident. Atfter the completeion of wave D we had a pull back, so all great. Then we had another push, forming a double top with divergence. Even though the double top bottom line was broken, last two days infirmed the pattern, a sign of strength. The double top bottom line is also very strong support from previous resistance. The infirmation was made with an inverse hammer, gap up and a strong day, almost a marubozu.
Now lets look at the oscillator. I do not like so much the RSI, but I found more patterns on it than on my favorite, the MACD. The oversold condition was always followed by a consolidation or a pullback. What concernes us now is the 50 level which provided excelent support in previous corretions or consolidations. Now, it represent resistance, so a strong day with a rise over the 50 level will be extra bullish.
I would set the overall target at 600, like I did on my previous post which worked only halfway, so my first target is at the previous two tops (575), and after that we can think about 600. My stop is under the inverse hammer.
Besides the technical reasons of this trade, we also have the deal Apple made with China Mobile, which they claim is the biggest and fastest network. This is from an article on CNBC : "China Mobile said it did not have exact sales estimates for the iPhone. But the firm added that as of January 13, it had received 1.2 million pre-orders or 60,000 per day since December 25." Selling of the iPhones will start this Friday. This means higher profits for Apple. Everytime theres were rumours about this deal, Apple would go up, but because of the negative talk Apple gave away all the gains, so this might be an excellent buying level.
If we don't see an ugly gap down, I am going to enter on market open, and add if we go strongly over 575.
Now, let's talk about the stock, not my emotional problems. The big picture for me is the AB=CD leg and the double top. I have seen more AB=CD patterns in the past on Apple, so I am extra confident. Atfter the completeion of wave D we had a pull back, so all great. Then we had another push, forming a double top with divergence. Even though the double top bottom line was broken, last two days infirmed the pattern, a sign of strength. The double top bottom line is also very strong support from previous resistance. The infirmation was made with an inverse hammer, gap up and a strong day, almost a marubozu.
Now lets look at the oscillator. I do not like so much the RSI, but I found more patterns on it than on my favorite, the MACD. The oversold condition was always followed by a consolidation or a pullback. What concernes us now is the 50 level which provided excelent support in previous corretions or consolidations. Now, it represent resistance, so a strong day with a rise over the 50 level will be extra bullish.
I would set the overall target at 600, like I did on my previous post which worked only halfway, so my first target is at the previous two tops (575), and after that we can think about 600. My stop is under the inverse hammer.
Besides the technical reasons of this trade, we also have the deal Apple made with China Mobile, which they claim is the biggest and fastest network. This is from an article on CNBC : "China Mobile said it did not have exact sales estimates for the iPhone. But the firm added that as of January 13, it had received 1.2 million pre-orders or 60,000 per day since December 25." Selling of the iPhones will start this Friday. This means higher profits for Apple. Everytime theres were rumours about this deal, Apple would go up, but because of the negative talk Apple gave away all the gains, so this might be an excellent buying level.
If we don't see an ugly gap down, I am going to enter on market open, and add if we go strongly over 575.