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  • Elliott Wave Analysis Of Apple & Expected Price Targets 3 comments
    Aug 20, 2012 9:49 AM | about stocks: AAPL

    By Chris Diodato

    Good morning! About six months ago, I decided to do a long term Elliott Wave analysis of Apple. I double checked my work, and even labeled the intraday fluctuations. I came up with this.

    (click to enlarge)

    There were two scenarios.

    1. Wave V does not extend, and the entire movement ends at 550. Therefore, that makes waves I, III, and V, all the same size, in terms of price movement.
    2. Wave V extends, placing the next target at about 670.

    Even though Apple met brief resistance at 550, scenario two eventually played out. Now, here is what the analysis looks like

    (click to enlarge)

    Therefore, from here, we have some more room to the upside until the pivots that occur at the beginning of September. Looking at the stock now, it looks like Apple is once again up today keeping the entire market from going into a landslide (talk about a broken record!).

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Comments (3)
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  • You said towards the end of the article "Therefore, from here, we have some more room to the upside until the pivots that occur at the beginning of September". But you have the "Ultimate Top" @ just shy of $670. As of close today that would leave a 4 point gap until September. Sorry in advance, I don't understand. Are you expecting a pivot / correction @ $670? I really enjoyed your article and appreciate your work. If you could just please explain the last part to me that would be great!
    20 Aug 2012, 10:04 PM Reply Like
  • Author’s reply » The pivots just give us a rough estimate of a reversal of trend, so if there are pivot lines in the beginning of September, that means that we should expect a reversal of the current trend, which is up, to down. That's all, pivots are like cycles, they are very secondary to the other types of the analysis. We should pay more attention to the price movement, and watching today's price movement in Apple, it really looks like the beginning of a reversal (at least short term).

     

    Thanks for the comment and the kind words!
    21 Aug 2012, 01:04 PM Reply Like
  • You hit it right on the head! Correction/Pivot from $674.88 to $656.06. I took your advice at the open today and sold my weekly long positions. I was pleased to see the correction. Your advice/article saved me thousands, literally! Any clue on future support levels?
    21 Aug 2012, 09:33 PM Reply Like
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