AAPL & PCLN

May 1st, 2011

PCLN closed Friday at $547.00 with the high of the day being $556.00. From the $520.00 entry we are sitting on +27.00 points of profit. At the minimum we would have the stop at even on PCLN. To lock in profits a $532.00 stop is a good place for a trail stop.

If APPL can take out the $355.00 level we are looking for a move up to the $390.00 level. You can see on the AAPL daily chart we had a trend line breakout and then a re-test of that trend line break. This is a bullish pattern overall but it still needs to get through the last structure high at $355.00 for a clear signal to enter.

The stop can be as tight as $345.00.

If APPL does not take out the $355.00 AAPL will most likely come down to the $332.00 level before making up its mind on the next big move. From the 2/16 high AAPL has had overlapping waves which are considered corrective which means pattern wise AAPL should see higher prices sooner than lower prices.

Happy Trading,

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