APPLE Technicals Behavior - Pot Pourri ?
Februay 28 ( 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.
As Apple's March 9 event getting quite near, it will add to the already high Volatility indeed.
Looking at Historic Relative Volatility Here: APPLE Relative Volatility Technicals
I did add below a spreadsheet of Apple Shares Performance Around Product Launch.
Because the iWatch is a brand new product, it will add to the Apple Fever and Volatility...
February 28: Pot Pourri : The Big Picture ?
We are Still in Uncharted Territory BUT started a Consolidation Process;very difficult
to call IF it that Consolidation will be in time more than in a change in price level...
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 finally did have that signal...
Daily Wedge Support
On February 26, Apple Shares closed below the Support Trendline then at $129.44 from a Wedge that started on February 17,
a bad technical sign indeed. ( Top Red TrendLine on the chart below - ellipse ) - Closing price was $128.46
For March 2, we MUST have a daily close below $129.52 to consider we stay into a Nasty Bear Move, unless it is back to only a Bear Phase as shown by the chart below...
Also for March 2, Only a daily close above $130.57 will bring us back to a Bull Trend...
AAPL Stock Price Daily ( Daily Candle Chart )
The Weekly March 6 129 Straddle ( Long Call and Long Put ) closed last Friday at $3.67 and
The Weekly March 13 129 Straddle ( So Including the March 9 Event ) closed last Friday at $5.75
I will follow those this week...