Best of the Week
Most Popular
1.North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - Nadeem_Walayat
2.Researchers Find $10 Billion Hidden Treasure In A Dead Volcano - OilPrice_Com
3.Gold and Silver : The Battle for Control - Rambus_Chartology
4.Asda Sales Collapse and Profits Crash! UK Retailer Sector Crisis 2017 - Nadeem_Walayat
5.Deep State Conspiracy or Chaos - James_Quinn
6.The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - Plunger
7.Gold Stocks Coiled Spring - Zeal_LLC
8.Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - John_Mauldin
9.Crude Oil Price Precious Metals Link in August - Nadia_Simmons
10.Gold and Silver Precious Metals Nearing Breakout - Jordan_Roy_Byrne
Last 7 days
Donald Trump Terrorist in Chief, “We Aren’t Nation-Building Again, We Are Killing Terrorists” - 23rd Aug 17
How Planned Fed Rate Increases Impact The National Debt & Deficits - 23rd Aug 17
The 3 Assets to Add to Your Stocks Portfolio in This Rate Tightening Cycle - 23rd Aug 17
Half Price UK Theme Parks Entry 2017 With Cheap Chocolate Packs - 23rd Aug 17
[GIFT] Market Control System! - 23rd Aug 17
4 Reasons European Stocks Will Make a Big Comeback This Year - 22nd Aug 17
3 Lesser-Known Charts Revealing a Massive Stock Market Disconnect - 22nd Aug 17
U.S. Treasury Secretary: "I Assume Fort Knox Gold Is Still There" - 22nd Aug 17
Is the Stock Market Setting itself up for a Spectacular Crash? - 22nd Aug 17
Power Elites Launches Civil War Against Trump - 22nd Aug 17
The Stock Market No Longer Cares About Trump - 21st Aug 17
The Coming Boom Of Productivity Will Get Our Economy Back On Track - 21st Aug 17
Buffett Sees Stock Market Crash Coming? His Cash Speaks Louder Than Words - 21st Aug 17
This Could Be The Biggest Gold Discovery In History - 21st Aug 17
Stock Market Correction in Full Swing - 21st Aug 17
Seeking Confirmations – US Stock Market - 21st Aug 17
The changing demographic of online gamblers - 21st Aug 17
Gold is a coiled spring… the breakout is here, fundamentals are in place, technicals are compelling - 20th Aug 17
A Midsummer Night's Dream: Buy Gold and Silver - 20th Aug 17
Gold Mining Stocks 2017 Fundamentals - 20th Aug 17
EIA Weekly Report and Crude Oil - 19th Aug 17
4 Insights for Adjusting Your Portfolio in a Rate-hike Environment - 19th Aug 17
Gold Direction Indicator - 19th Aug 17
Historical Inevitability and Gold and Silver Ownership - 19th Aug 17
You Are Being Lied To About “Low” Gold Demand - 19th Aug 17
This is Why Cocoa's Crash Was a Perfect Setup - 19th Aug 17
Gold, Silver Consolidate On Last Weeks Gains, Palladium Surges 36% YTD To 16 Year High - 19th Aug 17
North Korea Is Far From Being Irrational… It Has A Plan - 18th Aug 17
US Civil War - FUNCTIONAL ILLITERATES TRYING TO ERASE HISTORY - 18th Aug 17
Bitcoin Hits New All-Time High Over $4,400 As It Catches Paypal In Total Market Cap - 17th Aug 17
3 Psychological Ingredients behind Great Web Content - 17th Aug 17
The War on Cash - Rogoff, Orwell and Kafka - 17th Aug 17
The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - 16th Aug 17
Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017 - 16th Aug 17
U.S. Stock Market: Sunrise ... Sunset - 16th Aug 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

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.


© 2005-2017 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

Catching a Falling Financial Knife