From Wednesday when the price of Apple stock was at its lowest in a while, sitting at $186, measured to the highest point the price has been today at $196.09 we have seen an increase of 5.42%.
As you can see from the hourly chart, the price of Apple was below the 0.5 Fibonacci level which served as resistance but the buyers have managed to push the price above as one more higher high was been made.
The price has encountered resistance at the significant horizontal level at around $195 which was the resistance point prior to the increase made to the all-time high at $233.73 and has started getting rejected with the price action today forming a minor downtrend.
As the price moved to the upside in a five-wave manner we have most likely seen an impulsive increase which now looks like it ended or is near completion. This current retracement could only be a minor one before the price is set to interact with the 0.786 Fibonacci level if we are to see the 5th wave extension.
Considering that the price of Apple prior to the seen increase made a downfall from the all-time high to $142.25 which was a decrease of around 39.3% this increase could be another impulsive move to the upside which would be lead to new all-time highs or could be the A wave from the correction in the opposite direction.
Zooming out on to the daily chart, you can see the significance behind the horizontal level at $195.39 as a significant resistance level.
As the price came up for a retest of resistance and got rejected (as indicated by today’s red candle with a wick from the upside), a retracement would be the logical next step for the price progression.
This retracement could be the second corrective wave of a higher degree impulse or is the continuation of the downfall from the all-time high in which case the price would go lower than expected, but in either way, I would be expecting more downside from here.
If we are seeing the start of the second corrective wave of a higher degree five-wave move the price is set to go back around 0.618 Fibonacci level where the next significant horizontal level in line to the downside is which is in price terms around $162.38.
Another significant support point could be around the 0.236 Fibonacci level as this was the horizontal resistance from the horizontal range whose support level is expected to get retested but considering that the 5th wave likely ended and that the price isn’t to continue its upward trajectory for now I don’t believe that the level would serve as a significant resting point for the price going in a downward trajectory.
From the depth of the expected retracement, we are to see an adjust the projection but as I’ve said in either way I would be expecting a bearish period for the price of Apple stock.