Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

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Friday, January 18, 2013

Apple shares price analysis

Apple lost almost 30% from its top ($700 area) in late September 2012. Analyzing the price moves from June 2011, an impulsive 5 wave rise can be observed, with the second wave being a flat correction and the fourth one being a zig-zag, respecting though the alternative characteristic of the Elliott Wave principle.

The most recent price action points to an end of the correction, as a falling wedge is developing, this probably being the final (C) wave from the intermediate (A)-(B)-(C) corrective structure. The out come of this scenario will be the overcome of the $700 some time this year.

The alternate scenario is that a intermediate wave (1) is developing, this being a leading diagonal as the price action fits into a wedge. The first conclusion regarding this scenario is that we will probably assist to a quick zig-zag on the up-side to complete wave (2) and then a sharp sell off that will take the price at least to the $320 area.

However, both of the scenarios are indicating a near term reverse of the intermediate downtrend and the swing traders could use this to buy in weakness is the price will reach the $470-$480 zone.

The volumes are also playing an important role here so the investors should also take a good look at their evolution.