AAPL, GOOGL updates 09/20

AAPL: looks best as having completed intermediate-iii and iv. Price struck the ideal 1.618x extension of i, from ii, for wave-iii at $230 and started to decline. Ideally a wave-iv then bottoms at the 1.00x extension ($210.92), which would have been a minor-c = 1.382x a, but so far all we got was a minor-c=a drop to $214. This satisfies a simple 3-week a, b, c correction and therewith wave-iv. Of course wave-iv can get more complicated and yesterday was only the wave-a of iv low, but I find that less likely given how the indices are performing. In addition, there’s nice positive divergence on the daily RSI5 and an A.I. buy signal and in a strong bull downside targets are often not reached. Hence, the downside risk at current levels is ~$10/share, while the upside potential is at least $20/share. A decent risk reward here IMHO.

aapl-daily 1

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GOOGL: With today’s strong candle and an almost c = 1.382x a extension, it’s likely safe to say intermediate-a of major-4 is in and intermediate-b to possible around $1225 is now underway. That’s where the 50% retrace of wave-a resides as well as the 50d SMA, which is starting to slope down, as the 20d already is; meaning the short to intermediate-term trends are down.

GOOGL daily

A simple c=a relationship from the possible $1225ish b-wave high then targets: 1225- (1293-1159) =  1091, while a c=1.382x a extension targets 1225 – 1.382x 134 = 1040. Both fit with the 100% Fib-extension of major-1 (upper purple horizontal arrow) and the 38.2% retrace of all of major-3 (lower purple horizontal arrow)

googl weekly