1) observe the gap
2) We assume the spike down in Sep is anomalous
3) Downward price target of is the distanceof the neckline to head
4) NEckline retest confirms the pattern
People will laugh at you if you say $75 as a price target for AAPL . But there are some good technical reasons to believe it might happen, outlined in this chart.
WE have an unfilled gap at $75, and a confirmed top with a technical target that takes us to the gap.
Sentiment has turned and while a move to $75 would be extreme for such a profitable company, extreme things happen in the market more often than we like to think.
Even if you don't like the short, if AAPL does freefall, the $75 mark represents an excellent target from which to buy and hold as an investor, if you believe the company is extremely undervalued at such a level.