AAPL, NFLX update May 30

AAPL: When we analyse the weekly chart we see that all TIs are pointing up, and an ideal A.I. buy signal was given (green up arrow). Support at $90 held, with a quick stab below to trigger everybody’s long stoplosses so the market can then go back up (i know, evil right!?)

Price moved back above the 20w SMA but is still in down trend. Resistance is now at the upper descending trend line.

aapl 1

On a daily time frame we see of course the same descending trendchannel, but also a gap fill to around $104; which happened due to their prior (bad) earnings. This gap will most likely get filled. So far we cannot yet count 5 waves up off the recent new low and are thus uncertain if all of IV bottomed yet or not. We want to see a break out of the descending trendchannel and 5 waves up followed, what ever comes first, before turning long term bullish on AAPL. Right now it certainly is a long play with about 5% upside left at least.

aapl 2

***********************************************************************

NFLX: Same story as AAPL. Either a bounce is underway or a new bull has started. The daily chart shows the major 3, 4 of Primary III count, while the weekly chart shows the Primary III, IV, V count. We are not yet certain which count is operational. But, we can observe that price bottomed at the lower trendline, connecting with the Primary II low. Also here there’s a need for at least gap fill at $106. The market can then decide if it wants to head lower for a c-wave or simple do a minor 1,2 set up.

nflx 1

The weekly chart also shows all TIs pointing back up and price now back above the 20w SMA again.  The chart since August 2015 is rather ugly we must say with lots of wild swings. The easy money has been made; for sure.

nflx 2

We would need to see a move above the “b/1” or “b/ii” high to ascertain major 3 or intermediate iii is underway. Not shown here is volume, but this has been rather anemic and decreasing since the 2012 low.