Assessing The Top In Apple Stock (AAPL)

All the way back in February 2015, I blogged here about the coming stock top in Apple (APPL – quote). This wasn’t a biased or “gut” feel.  It was purely based on form, proportion and harmony:

Apple Nearing Major Wave Completion: AAPL Price Targets and Outlook

I own an i-Phone – it’s amazing and has changed the world. Let’s face it the company has changed the world and it’s got billions of dollars in cash and all that. I get it, I really do… but that’s what I believe and understand right now, not what I see.

In February 2015 I saw multiple technical indications calling for a pullback (at a minimum) and a potential intermediate stock top in Apple. Additionally, Palladium was beginning to break down. Yes, I said palladium – check out the link for more.

The sell signal has played out pretty well, but it may not be over yet. So it’s time for an update to see if that intermediate stock top in Apple is playing out and whether it will get worse before it gets better.

The first thing I want to show is that the Apple stock decline hit one of the lower price targets (almost exactly) – a critical square root level. That’s a big deal. The candle off of that square root low is a very powerful candle. So Apple bulls really want to see the stock price remain above those lows.

The other thing we need to look at is the support areas shown on the chart below. The mid 80’s is a ways away but it would be a very nice area to BUY to take into new highs – IF the analysis presented in February 2015 is correct.

apple stock top and decline lower price targets chart december 21

As you can see below, Palladium is flirting with its lows. A break of these lows “should” target the levels shown. Ultimately, I would like to see Palladium down into the target areas shown as APPL stock price approaches the mid 80’s for a potential BUY.

palladium decline lower correlation to apple stock top chart

In summary, watch the levels shown above on AAPL and if we get down into the mid 80’s, then this might be the time to step in and buy.

Thanks for reading and Happy Holidays!

 

Twitter:  @BartsCharts

Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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