Is Apple ripe for a rally?

TL;DR

Apple's chart analysis suggests a resumption of the uptrend, with a potential reversal and support at key levels.

Transcript

hello it's john burford with chart of the week for monday the 26th of october and i'm covering apple here just ahead of its quarterly results due on thursday and i thought i'd show you um how i go about analyzing short-term moves and it appears that uh um we should be getting a resumption of the uptrend in apple based upon the chart here now this i... Read More

Key Insights

• 👋 Timing pullbacks in stock analysis is difficult, so waiting for a good pullback is preferred.
• ❓ Momentum divergences indicate potential sharp reversals in the price movement.
• 😥 Fibonacci retracement levels, such as the 62 retrace, are useful in identifying stopping or reversal points.
• 🫥 Trend lines can switch from resistance to support after a break, providing potential guidance for future price movements.
• 📣 Considering gaps in charts can provide insights into potential trade opportunities.
• 🎁 The market often attempts to fill gaps, presenting potential buying or selling opportunities.
• 🎚️ Taking partial profits at key levels, such as the 130 level, can be a prudent move.

Questions & Answers

Q: How does the all-time high in September indicate a potential pullback?

After a strong move like the all-time high in September, a pullback is common. However, timing the exact pullback is challenging.

Q: What is the significance of the momentum divergence in the chart?

The massive momentum divergence at the low suggests a sharp reversal is likely to occur, indicating a potential resumption of the uptrend.

Q: Why is the Fibonacci 62 retrace level important in the analysis?

The Fibonacci 62 retrace level is a common stopping or reversal point for waves in technical analysis. It plays a significant role in identifying potential price movements.

Q: How does the trend line act as potential support after a break?

After breaking the trend line and experiencing a surge up again to the Fibonacci 62 level, the trend line becomes a line of potential support.

Summary & Key Takeaways

• The all-time high in early September indicates a pullback, but timing it is difficult. Waiting for a good pullback is preferred.

• The chart shows a wave A, B, and C, with a massive momentum divergence at the low, indicating a sharp reversal.

• The Fibonacci 62 retrace level acts as a stopping or reversal point, and the trend line becomes potential support after a break.