The updated 5-Year
Weekly chart below of AAPL shows that a Head & Shoulders
pattern may be forming, with declining right shoulder and neckline within its
rising 4-year channel.
The first support level (below a
potential neckline) is found at a confluence of a 40% Fibonacci retracement
level, a 127.2% External Fibonacci retracement level, and the bottom of the
channel at a price of 465.61.
The next (and
major) support level sits at a confluence of price (consolidation), a
50% Fibonacci retracement, a 161.8% External Fibonacci retracement level, and a
50% Fibonacci fanline level at a price of 400.00ish.
The next chart is a
5-Year Daily ratio chart comparing price action of AAPL with
the NDX. You can see that AAPL has been trading weaker than its index, and price
has broken and closed below a major near-term major support of
level of support ties in with that of the first support level mentioned
above…a confluence of price (consolidation), the 40% Fibonacci retracement
level, and the 200% External Fibonacci retracement level at a price of
major) support level sits at a confluence of price (consolidation)
and the 50% Fibonacci retracement level of 0.15.
writing this post about an hour after the market open today (Thursday), the
Momentum indicator has not dropped to a new low yet on today's initial price
decline…indicating that a possible bounce and retest of what is now
resistance at 0.21 may be forthcoming…one to watch over the next
days/weeks, and into the end of the year.