The pattern shown simplifies AAPL’s tortured histrionics so that you can trade the stock without fear of significant loss. A drop to x=183.27, for starters, could be bought ‘mechanically’ for a minimum one-level ride. And D=195.33 could be shorted, albeit gingerly, with the tightest possible stop off a reverse pattern. If the stock pops through 195.33 with little effort, you can infer that the rally is about to pick up tempo and move into record territory for the third time since July.
AAPL – Apple Computer (Last:188.82)