“A few days ago, when Apple (AAPL) reached my technical target around $390, I posted an article suggesting that there was a risk for it to continue lower still should the upcoming earnings report disappoint,” Ramki Ramakrishnan writes for Forbes. “The next target was at $318.”
“As we all know, following the announcement that Apple will issue debt (at attractive rates) and return a load of cash to investors, the stock has quickly recovered some ground,” Ramakrishnan writes. “This article seeks to explain briefly how a trader uses Elliott Waves to change his tactics.”
Ramakrishnan writes, “We always start off with a hypothesis. In this case, my hypothesis was while Apple stayed under $420, the risk was for continued weakness. However, when we notice that a new five-wave pattern on the way up has surpassed the fourth wave on the way down, we recognize it as a powerful signal that the trend is changing.”
Read more in the full article here.
Apple share price could go as high as $1,600 within 24-36 months – April 9, 2013