Apple Correcting Now with Target $578 Early March

Apple Stock.jpg

Apple shares are becoming more volatile, and this typically has important implications going forward. 

Apple (AAPL) had an interesting week.  The stock surged higher initially, and then fell $40 off the high with a significant price reversal. This example of parabolic price action can be explained in mathematical terms as follows.

Apple started to correct last week, and further correction into the $470's area over the next week or so seems likely.  The support levels in that area could be tested as shown on the chart.  Once the correction is complete, then a spectacular parabolic vertical phase to the $578 level is targeted.

Parabolic tops occur at the end of long up trends, and mathematically examples of this price behaviour "do not end well".  That is, price tends to collapse soon after topping.    

Yes, AAPL is set for a wild ride in coming weeks.  Bulls, bears, and traders can all find some action... 

I am on the wrong planet