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.
