The leading consumer electronics products giant got my attention. This year was very impressive for AAPL and made huge gains. Elliott wave teory uncovers future of this leading market player. 

Company profile 

The Company designs, manufactures and markets personal computers and related software, services, peripherals, and networking solutions.
Ticker: AAPL
Market: NASDAQ

Elliott Wave Analysis

 AAPL is one of my favorite stocks to count waves. As you see in the chart below AAPL now is in major wave 3 of primary wave III. As Elliott wave teory says the 3rd wave is the strongest wave in all wave structure.  If we look to a short term count - now we are in a minor v wave of major wave 3. So what is the status now?

Short term:

Short term count suggests that Apple is now completing minute and minor wave cycles and is few steps fom topping.  While it’s major wave 3 it is very strong, just look how this stock performed this year - it almost doubled! This is not the best time to buy, but my count says we should go little over 200 before this stock tops.

Medium term: 

Medium term count clearly displays that we are near the top of the Intermediate wave v and this stock will complete Intermediate wave cycle.

Long term: 

I made some calculations and i think that ~205 would be the next stop for Apple and this would end major wave 3. If this plays out the major wave 4 will kick in and the stock will tank. I project that price will drop somewhere 150 to 120. But for this moment let us we wait till major wave 3 ends.
If you want to go realy long I would suggest you wait a little bit and buy only then major wave 4 bottoms (at earlier mentioned price levels). My calculations say that primary wave III will top at about 260.

Conclusion:

From Elliott Wave perspective this stock even now after a hudge rally has good prospects and can double your portfolio. Just don’t forget to buy then everyone will sell (i’m talking about major wave 4).

Disclosure: Author does not have a position in AAPL.

Tags: aapl, elliott wave

This entry was posted on Sunday, October 21st, 2007 at 7:21 pm and is filed under US Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.