A Weekly Chart Update on Apple AAPL

Feb 26, 2009: 8:25 PM CST

Let’s take a moment to see some interesting developments on the weekly chart of Apple Inc (AAPL):

I’ve added a little possible Elliott Count, assuming the 2007 was the price peak for the time being before beginning a corrective phase down.  If this count is correct, then we’ve either reached the bottom for the time being, or we might not be that far away – provided the $90 per share level holds (we will need to re-assess any possible bullishness should $90 break).

It appears that the C Wave down has sub-divided into its own 5-wave structure, and perhaps the birth of a Wave 1 is underway… but it still might be too early to anticipate this.

Price came up into confluence resistance and formed a Doji on the weekly chart (which is a sell-signal no matter what your analysis shows) and we’re perhaps in the middle of that downward inflection.

The momentum oscillator has been diverging since October, much like that of many stocks and in fact the major US Equity Indexes.

To get super bullish on Apple, we’d need to see a break above the $100 per share level, and until then, the bias remains neutral to bearish until proven otherwise.

Price is still in a confirmed downtrend and is beneath all three key moving averages, and the 20 has just served as resistance at the $100 level.

Strength in Apple (AAPL) would be a boost in the overall market, as that could indicate consumer or at least investor confidence might be growing.

Keep watching this and other technology stocks closely.

Corey Rosenbloom
Afraid to Trade.com

4 Comments

4 Responses to “A Weekly Chart Update on Apple AAPL”

  1. Anonymous Says:

    12345 uptrend ABC downtrend or 12345 downtrend ABC uptrend but you ABC downtrend 12345 downtrend!!! Does not make sense!

  2. Corey Rosenbloom Says:

    In Elliott Wave, C Waves are always 5-wave affairs.

    In a Flat, A and B waves subdivide into 3-waves with the C being 5 waves.

    In a Zig-Zag, A is 5 waves while B is 3 waves and C is 5 waves.

    In this case, the C Corrective Wave had a perfect 5-wave sub-structure that I labeled.

  3. Anonymous Says:

    http://z.hubpages.com/u/699180_f496.jpg
    http://www.tradersaffiliates.com/ELLIOT5.gif

  4. Corey Rosenbloom Says:

    Anon,

    Thank you for the links – nice examples.

    What are you trying to imply with these? I don’t have any context or timeframe on the images.