As predicted in this post back in October 2012 LINK Apple's stock price has suffered a significant correction.
Apple monthly chart above showing trading all the way back to it's Initial Public Offering. I am bearish in the near term for Apple stock price and am expecting a bottom somewhere in the vicinity of $275 - $320 range to eventually set itself up. But in the short term I see a pretty decent trade setup.
This chart above is the daily chart showing the potential setup back into retest of the broken trend line above. It's a traditional head and shoulders pattern measuring about 85 points from neck to base. Add that to the breakout point and you have roughly $550-$555 for an approximate upside target which falls in line with the trend line which may very well come in as resistance now.
I'd expect a failure at that point and another equal size drop to proceed taking us into what I perceive to be strong support for a likely start of another bull market run to new all time highs again.
This last chart above depicts what I described above. How quickly sentiment can shift, not so long ago everyone wanted a piece of this stock for what then was thought to be a given above $1000/share. Now many have given it up, although I don't think we are near the inflection point just yet, another drop into that support zone would flush out a lot of weak money. When everyone is fearful it's time to get greedy...
