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Saturday, October 24, 2009

Setting Apple's Target

I always enjoy charting highly liquid stocks such as Apple and such. They emit strong Elliott Wave patterns. These highly popular stocks is what the public buys and these are hard to manipulate. So the patterns often stand out at certain points.

I have heard advice that daytraders should generally limit themselves to a short list of stocks so they become familiar with them. Indeed one could trade a stock like Apple back and forth with some tight discipline and do very well.

Third waves are usually easy to spot. Usually being the strongest waves, they help identify a wave structure.

I have been using the concept of base, acceleration, and deceleration channels for a bit now in setting targets. Apple seems to be on a sharp wave (iv) retrace that should, in theory find support at its previous subwave iv which is also gap support.

Once that holds, it merely a matter of counting another 5 waves up until the next turn. And since I show this as a potential "top" in Apple, catching the this particular turn could prove to be profitable.

Indeed, psychologically speaking, Apple is at the "top of its game" and every analyst sees nothing but great things as far as the eye can see....

Indeed I'll have all 5 charts on my public chartlist. It will be fun to follow to see if it all comes true.
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