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

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).

1. Apple made a bearish bounce at the 50% Fibonacci resistance.
2. Price is now testing the Fibonacci support levels. A wave 2 (pink) could bounce at any of these FIbs.
3. Only a break below the bottom at $116.27 invalidates (red circle) the wave 123 (pink).
4. 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.

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

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

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