16 Jan 2013 ● 05:39 AM
APPLE OF YOUR EYE
Apple computers has been the rock star of the Nasdaq comeback or should we say the US market as a whole. In that light it was an interesting chart both in the short term and long term. First find below the long term chart of Apple. It was in wave 5 for some time and after a throwoever an upper trendline it has fallen back. Wave 3 was extended by 2.618 times wave 1. Wave 5 almost achieved equality to wave 1. If the 5th wave indeed ended then a multi year corrective or consolidation phase might come in for Apple [Similar to Bharti since 2007]. But what really made me look at this chart was the near term set up.
In the near term Apple made an H&S pattern and broke below the neckline. This can be seen below. Yesterday prices fall to a new 9 month low as they broke the neckline. The target is 365$ for the pattern. In other words it will remain a pressure point for the Nasdaq.