APPLE Technicals Behavior - Uncharted Territory ?
Februay 22 ( From TradingView )
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As I mentioned in the Relatively Speaking Research a few weeks ago, So it is time indeed to think in a relatively way - I mean Long Apple Shares and Short the SP500 Index. So Days were AAPL underperform SP500 futures, it is time to add and unload when AAPL outperform....
I will give you Updates on Specific Trading Levels in the Dailys as Usual.
February 22: Uncharted Territory: The Big Picture ?
The Price Action on Apple Shares have been to say the least absolutely fantastic.
We are Still in Uncharted Territory as we make new highs days after days.
I decided to take a look at the Big Picture in terms of Price Levels taking as proxy
Fibonacci Levels Extension based on a weekly chart.
How to Calculate Fibonacci Extensions
So taking the previous high peak level reached on the week of September 17 2012 at $100.72 and the following bottom reached on the week of April 15 2013 at $55.01, I found those Fibonacci Extension Levels:
Fibonacci Extension % Price
See also the chart below.
APPLE Technicals - Weekly Levels - AAPL
Fibonacci Extension ( from Investopedia )
In practice, most traders use Fibonacci extensions in combination with other technical indicators/patterns to help them determine appropriate target prices. The 161.8% level is often used to set the price target on a breakout of an ascending triangle as we have on the chart above for Apple Shares, in our case $129.03.
But you should never base any decision to buy or sell a stock based on Fibonacci alone. Wait for candlestick patterns (price action) to develop and confirm that the stock may indeed reverse at your target price.
We did not have yet that signal yet...
Daily Wedge Support
On February 20, Apple Shares closed above the Resistance Trendline then at $129.10 from a Wedge that started on February 17,
a good technical sign indeed. ( Top Red TrendLine on the chart below - ellipse ) - Closing price was $129.49
For Febrary 23rd, we MUST have a daily close above $129.15 to consider still in a Break Out Mode, unless it is a false Break Out and will the First Signal of a Correction as shown by the chart below...
AAPL Stock Price Daily ( Daily Candle Chart )