10 Days ago, we wrote AAPL: Still Room to Go Up! and stated that it needed a move towards $117 – $120 to complete an intermediate 5-moves up from the lows. Apparently, buyers exhausted all their power to extend wave 3 more than 262% extension (normally 162%) and wave 4 needed to correct more than 23% of wave 3 (see chart below).
Currently, we have an A-B-C structure for wave 4 and it is exactly 38% of wave 3
AAPL 4H Chart – April 25, 2016
This week, AAPL should hold its previous local low, $104.62 in order for the above scenario to play out. With earnings on Tuesday, we believe that it will be a great boost to put an end to this intermediate wave i with a push towards $115 – $117, at the upper-bound of the channel.
*All long trades following this strategy MUST have a Catastrophic Stop-Loss below $104.50.