I’m sure the burning question in AAPL ($430.17, up $13.00) is whether or not this last low is a major low or not.
Let’s look at some parameters here. First we did make the last low into some Fibonacci time cycles after making a little more than a 1.618 extension of the prior swing up into the 3/25 high? This also overlapped some key WEEKLY support in this stock. That is what supports a bullish scenario. What we need to be aware of however….is the fact that the daily chart is still not positive unless we can clear the 3/25 high along with key resistance that comes in underneath that high.
Notice that many of the prior rally swings illustrated on this chart lasted 49.07-53.77. If we project these prior swings from the 4/19 low it provides a very important resistance decision on the way up that comes in at the 434.17-438.87 area. So IF we do have a more important low in place, AAPL needs to clear this zone to feel more confident that a rally can continue from the recent lows. If it does not, then it would be time to exit longs or at least trail up stops on those positions. Also if we see a proper sell trigger, we can look at a short against the same zone. (NO TRIGGER NO TRADE!!) Remember that the last time that we met such resistance, the 3/25 high was put in. This is not to say that the SAME thing will happen this time….but this is REASON to watch this key resistance on the way up for sure.
Let’s see what $AAPL does around this next key decision and trade accordingly.