AAPL, FB update: 12/29/2015

AAPL: Time to update the most known stock of all times. Appears we had (green) minor 1 finish early November at low $120s and minor 2 has since been underway, forming a clear zigzag (white minute a, b, c), with the c-wave being an expanded flat by itself consisting of (orange) micro a, b, c. Minor 2 should ideally retrace between 50-76.4% of minor 1 -given that it is a zigzag- and that area is depicted with the green box: our minor 2 target zone. With a zigzag, minute c should be at least the length of minute a, measured from b. Thirdly, in an expanded flat, the c wave is often much longer than the a-wave. In this case we have minor 2 very close to the 61.8% retrace of minor 1; minute c now at almost 1.236x minute a, and micro c = 2.618x a (hard to see). As such all minimum requirements have been met for minor 2 low.

AAPL

FB: This is a very busy chart, with a lot of trendlines. Sorry about that, but it shows all the things we track to ensure we’re on the right side of the trade as much as we possible can. What we notice is that price since the early November high, which was most likely minute iii, has mostly gone side-ways as it  is now only $5 (4.5%) below the ATH. As such it appears a bullflag is forming (orange lines). IF that’s the case, then the flag pole was $110-$85=$30 in length and assuming intermediate iv bottomed at ~$100 then the bull flag targets ~$130. Using the intermediate v=i relationship gets us to ~$124, close to the bull flag target. In addition, downside momentum is loosing steam and the tight Bollinger bands tell us a big move is soon coming. First things first, price needs to get back over the dotted ascending trend line and move out of the green descending trend channel as well as out of the blue dotted ascending trend channel. Once that’s accomplished the price target should be in sight.

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