Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

AAPL's 6% June slide - When Prices Are Falling, TWO Numbers Matter Most

Companies / Apple Jul 19, 2017 - 02:08 PM GMT

By: EWI

Companies

On June 29, the Apple iPhone turned 10 years old. But, for many, the mood surrounding the milestone was less than celebratory. Reason being, in June alone, Apple Inc. (AAPL) plunged 6% to two-month lows amidst a broad-scale bruising of the global tech sector.

And so, the cursor on some Smartphone stock trading apps sits there -- blinking, blinking, blinking...

What's the next move? Is AAPL's 6% sell-off the start of a new downtrend. Or, will prices find a bottom and reclaim the upside?


It's a simple question. And yet, finding an answer seems so complicated. The mainstream route can be a twisted rabbit hole of conflicting news items, such as these contradictory Apple Inc. outlooks from June 30:

  • "It's time to bet against Apple" (CNBC)

-- Versus --

  • "Apple Inc. (AAPL) Stock: Still a Strong Buy. Ignore 'Peak' Tech" (Investorplace.com)

And, if you're not careful, the technical route can be just as confusing, leaving your price chart with more horizontal lines (to indicate potential targets) than a sheet of college-ruled paper.

Which brings us to EWI senior analyst Jeffrey Kennedy. In his June 15 Trader's Classroom video lesson, Jeffrey shows traders a simple and effective strategy for determining how far a counter-trend move will travel -- or, if said move marks the beginning of a new trend altogether. The best part is, knowing which scenario is underway comes down to TWO simple price levels:

  • Key support/resistance: Where prices will fall/rise to, and then reverse from if the larger trend is incomplete
  • Critical support/resistance: Where prices will penetrate if the trend is complete and a top/bottom is in place, thereby invalidating an Elliott wave interpretation

Listen to the following clip from Jeffrey's June 15 Trader's Classroom video to hear him explain how this strategy works in real time:

Listen to the following clip from Jeffrey's June 15 Trader's Classroom video to hear him explain how this strategy works in real time:

Jeffrey then shows a daily price chart of AAPL, marked by key levels where falling prices consistently dropped to, and reversed from, during the market's year-long uptrend. He then homes in on the June sell-off to determine its specific Elliott wave structure, labeling it a fourth wave based on two pieces of evidence, see:

An acceleration gap, which "often occur in the wave three position of an impulsive structure."

And, a decisive upside penetration of a base channel:

With a potential Elliott wave label in toe, Jeffrey then identifies the key and critical price levels for AAPL's fourth-wave, June sell-off.

As Jeffrey puts it:

"Traders can utilize this approach on any market and on any time frame."

He goes on to demonstrate its universal effectiveness in the real-time price action of the Dow Jones Industrial Average and sugar.

Watch Jeffrey's June 15 Trader's Classroom video in its entirety to see this simple, yet powerful trading strategy in action.

Announcing Trader Education Week: July 17-19

You've found a high-confidence trade setup. Now What? Spend this week getting FREE lessons on techniques to enter and exit trades with high confidence -- from one of the world's foremost market technicians, Jeffrey Kennedy. These free lessons will help you understand the necessary steps you should take when a new opportunity presents itself.

Register now and get immediate access to your Introductory Resources

This article was syndicated by Elliott Wave International and was originally published under the headline When Prices Are Falling, TWO Numbers Matter Most. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules