Apple (AAPL Stock) price testing deep Fibonacci support levels
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The recent $28 decline represents a 20% discount compared to the recent high at $145 in January 2021. Are there signs for a bullish recovery or trend? Let’s review.
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The main question is whether price has completed a bearish ABC (purple) pattern at the -100% Fib target or is price developing a larger bearish 5 wave pattern (red).
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On the 15 minute chart, price action could be building a bearish ABC (grey) pattern. But the upside does not look as strong.
The Apple stock price (AAPL) has reached an interesting decision zone. Although Warren Buffet recently sold a part of his AAPL stocks, he still owns a substantial amount of stock.
Price charts and technical analysis
The main question is whether price has completed a bearish ABC (purple) pattern at the -100% Fib target or is price developing a larger bearish 5 wave pattern (red). Our main analysis favors the ABC down and now a 5 wave up (pink).
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Apple made a bearish bounce at the 50% Fibonacci resistance.
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Price is now testing the Fibonacci support levels. A wave 2 (pink) could bounce at any of these FIbs.
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Only a break below the bottom at $116.27 invalidates (red circle) the wave 123 (pink).
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A bullish breakout above the resistance zone (red box) confirms the upside (blue arrows) towards the Fibonacci targets - if not higher.
On the 15 minute chart, price action could be building a bearish ABC (grey) pattern. But the upside does not look as strong.
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With a choppy and corrective wave 1, the wave patterns are unfortunately not as clear as we like.
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The bearish price action, however, is also corrective and does like an ABC down.
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The main decision will occur when price tests the Fibs. A bullish bounce (blue arrows) could confirm a reversal.
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Another confirmation could arrive if price action is able to break above the resistance zone for a bullish push (green arrows).
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A deeper push invalidates the immediate uptrend at least (red circle).
The analysis has been done with the ecs.SWAT method and ebook.
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Author
Chris Svorcik
Elite CurrenSea
Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.
