Premium Members Harmonic Trading Chart for AAPL

12-11-2013 AAPL D MTSApple has reached a region where two Harmonic Patterns have a similar completion target, this is called a double PRZ (PRZ aka Potential Reversal Zone), and becomes doubly important whether this zone can hold price or not.  A hold below the PRZ implies an attempt to go into retracement mode, meaning to retrace the Harmonic Patterns.  A hold above the PRZ makes a statement for the bulls and also changes the zone from a Potential Reversal Zone to a Target Zone on the way to higher targets.

There are indications that price will stall or pull back into support.  How price tests support levels is important.

An aggressive Harmonic Pattern trader considers this PRZ as an opportunity for a short entry, with risk above the PRZ.  A conservative trader waits for a close and hold below the PRZ, with the risk back inside the PRZ.  Regardless of entry, there are two key retracement targets, the first being the ideal minimum retracement for the smaller blue pattern at 526.27, the second being the ideal minimum retracement for the larger green pattern at 496.09.

Failure to pull back to those two key retracement targets keeps a bullish bias, and a hold above 575.14 has the ideal target at 668.59 with scaling points at 593.65 and 620.76.

A pull back to 526.27 that fails to hold as support increases the probabilities for 496.09 to be tested.