I’ll admit to puzzlement about the popularity of Apple products. My wife recently replaced her Samsung Galaxy with an iPhone. After a brief period it was returned and she’s back to using the Galaxy.
This piqued my interest in shares of Apple (NASDAQ:AAPL), which are currently trading around US$115, having retrenched back from US$130 in recent weeks. I wouldn’t be surprised to see them weaken to US$109, maybe even US$105.
The funny thing is, my US$105 essentially matches the ruling red uptrend on the immediate price cycle and I’d normally expect a bounce if such a level is challenged.
Surprisingly, unless the share price actually closes below the red line, it’s viewed as being on a longer term cycle to US$146. To judge by moves in the last week, Apple is worthy of being taken seriously again in the event of it trading above US$122. Even visually, this will make sense and suggest a stab at my US$146.
Despite being fairly relaxed about Apple’s recent behaviour, there’s a fairly obvious problem should the share price actually close below my red line. At the time of writing, the implication is of the closure below US$103, ticking the final box in a storyline which points to a bottom of $82.
If I were held with my toes to the fire, I suspect Apple will indeed bounce from US$105 and hopefully reach US$146 in the fullness of time.
As usual, get in touch with any requests for this column. As shown above, I’m more than capable of skipping outside the UK to explore other markets.
Alistair
Alistair Strang is the founder of www.trendsandtargets.com