Where Apple Will Peak Prior to Correction

My near-term work shows Apple (AAPL) at very overbought levels for the most recent upleg from the Dec 31 low at 321.31 to today's new all-time high at 346.64.  My pattern work has identified the next optimal swing target window at 346.40- 349.60 for a peak and the initiation of a correction in AAPL.

Of course, with 350 just above my next measured objective, and because many research analysts on the Street have 350 as their current 52 week target, let's not be surprised by a pop to 350. In fact, a 1% overshoot of my target will take AAPL to 352.50, which is just 1.8% above the price as we speak.

Putting all of this together, we get an optimal target zone of 349.00-352.50 prior to the onset of a correction. Lastly, AAPL earnings are due out next Tuesday after the close. If the stock remains overbought, and still bouyant into next Tuesday's close, then a sell-the-news set-up -- and a potential lower buying opportunity -- will be in place.


  Matched
x
  • In our live, interactive Trading Room, we identify trading opportunities in ...
  • Equity Index Futures
  • Index & Sector ETFs
  • Individual Stocks
  • Precious Metals
  • Energy
  • Forex
  • Treasuries
  • International Markets
  • And Much More
Join MPTrader Now!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!