The red line at $ 147.45 was indeed the most important key point for us in the short-term, along with the purple trendline. The moment we lost this dual-support level, AAPL triggered a mid-term pullback, seen in the daily chart:
As we discussed in my previous analysis, the 21 in the is the target for this pullback, and AAPL is almost there. Notice that the 21 is close to the 38.2% Fibonacci’s Retracement, making it another dual-support level.
The 61.8% retracement is another interesting support level too, as it almost coincides with the black line at $ 136.84, which is the previous top ( Apr 29). Previous resistances are supposed to work as support in the future, according to the Principle of Polarity.
This makes the 2 yellow areas good bottom candidates, and only then we’ll see if AAPL will remain , or if we’ll see a clear reversal pattern, like a lower high/low in the .
Meanwhile, we can only consider this movement as a pullback, until the charts tell us otherwise.
Let’s keep our eyes on the points mentioned in this analysis from here, and if you liked this post, remember to follow me to keep in touch with my daily studies, and support this idea if it helped you!
Thank you very much!