Will Apple’s new smart device help its stock prices?

Apple Inc has been everyone’s favorite investment and has exponentially multiplied itself over the years.

After the split 1:3 around 90 levels the stock is back near to its all time high!

Apple chart:

As per the Elliott Wave perspective, prices completed primary wave III at 100 levels and since then moving in wave IV. Internal structure of primary wave IV suggests that it is probably forming flat correction (A-B-C) where intermediate wave A completed at 55 levels and thereafter moving higher in form wave B in which minor wave c is ongoing. Hence after completion of wave B, we expect the stock to move lower in intermediate wave C. Now, any move below 80 levels will suggest that intermediate wave c has started on downside whereas on upside 100 will be an important resistance.

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Remembering Steve Jobs: Apple!

Remembering Steve Jobs (1955 – 2011):

Apple website states “Apple has lost a visionary and creative genius, and the world has lost an amazing human being. Those of us who have been fortunate enough to know and work with Steve have lost a dear friend and an inspiring mentor. Steve leaves behind a company that only he could have built, and his spirit will forever be the foundation of Apple.”

Apple Weekly chart

We did not have the opportunity to know Steve Jobs closely but his product and stock price speaks for everything he has done for Apple.  He indeed was a great visionary and innovator and revolutionized technology the way we see it today. World has lost a great thinker and Apple has lost the most precious asset to the company.

Apple weekly chart shows how Steve Jobs created true value for its shareholders. The stock was trading below $ 10 in 2004 and hit all time high at 422 just 2 weeks prior to Steve Job’s exit from the world.

Time will tell if Apple is able to manage without the great genius and progress the way it has in past six to seven years.

However Elliott analysis on Apple’s stock price and technical study are suggesting at least some consolidation or pull back (down) might be at hand from medium term perspective. Apple stock has moved in a well defined channel since 2009 with wave 1 extended as shown on the weekly chart. Wave counts are suggesting we have completed 5 waves up and there exists strong negative divergence. A move below 340 will provide first negative confirmation and the correction of the entire rally from 75 to 420 will then start.

This means the new CEO might face tough times convincing its shareholders that he can do the job well and with same dynamism / commitment that Steve entrusted him with. The long term trend remains intact - up for now but Apple might face challenging times from short to medium term horizon.