On the 27th of June the price of Apple Inc.’s stocks reached the second low of the Double Bottom pattern ,confirmed in the end of July by a breakout above 463$ per share. The pattern gave a very good signal for the trend reversal.
From the beginning of July until the mid of September the price has drawn a 5 small waves up moves, drawing Wave 1 on a higher level, and an abc correction, ending as well the 2nd wave. From 16th of July started another up move formed by 5 lower rang waves, which in my opinion has drawn the 3rd wave at the higher level that has ended in the beginning of December.
From 5th of December all the way to 10th of January 2014, the price has drawn a 3 wave, corrective move, which has touched the uptrend line and got pretty close to the 100 EMA. This means that around the price can find a good support area around 525$ per share. If the 4th wave will be over around here, I expect the price to rally to 600$ per share, ending this way the 5 wave pattern mentioned in Elliott Wave Theory.
Even though the price moved beautiful conform EWT I would be attentive at this support zone. If bulls will not pressure the price to bounce, we might see a fall under the trend line. A daily close under the 100 EMA could annihilate the current analysis and the price might fall back to retest 500$ per share, or, why not, even lower.