Apple Stock Price Testing Deep Fibonacci Support Levels

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. 

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.

Price Charts and Technical Analysis

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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). Our main analysis favours the ABC down and now a 5 wave up (pink).

  • Apple made a bearish bounce at the 50% Fibonacci resistance.
  • Price is now testing the Fibonacci support levels. A wave 2 (pink) could bounce at any of these Fibs.
  • Only a break below the bottom at $116.27 invalidates (red circle) the wave 123 (pink).
  • 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.

  • With a choppy and corrective wave 1, the wave patterns are unfortunately not as clear as we like. 
  • The bearish price action, however, is also corrective and does like an ABC down.
  • The main decision will occur when price tests the Fibs. A bullish bounce (blue arrows) could confirm a reversal.
  • Another confirmation could arrive if price action is able to break above the resistance zone for a bullish push (green arrows).
  • A deeper push invalidates the immediate uptrend at least (red circle).

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Disclaimer: The opinions in this article are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit ...

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