Chart of the week – Apple
Apple may rally to another fresh all-time high
Medium-term technical analysis
Source: CMC Markets
- The share price of Apple (AAPL) has managed to recoup more than 3 quarters (76.4% retracement) of its prior loss of -18% from its 182.88 current all-time high printed on 4 January 2022 to 14 March 2022 low of 150.11. In addition, it has also reintegrated back above its 50-day moving average.
- Hence, the recent 10-week of decline of -18% seen in AAPL from its 4 January 2022 all-time high has not damage its current major uptrend phase in place since 23 March 2020 low. Elements are now indicating a resurgence of another potential impulsive up move sequence; more of a residual/last up move of “hope and irrationality” to complete the on-going 13-year of long-term secular uptrend phase from March 2009 low based on Elliot Wave/fractal analysis in a looming stagflation environment coupled with global liquidity tightening conditions.
- If the 166.55 key medium-term pivot support holds (50-day MA, pull-back of the former descending resistance from 4 January 2022 high & 50% Fibonacci retracement of the recent recovery from 14 March 2022 low to 30 March 2022 high), APPL may see a further push up to retest the 182.88 current all-time high before another potential upward surge towards the next resistance zone of 194.45/199.70 (upper boundary of ascending channel from 21 September 2020 low & a cluster of Fibonacci extension levels).
- On the other hand, a breakdown with a daily close below 166.55 negates the bullish tone to see another round of corrective decline to retest 153.20/146.40 support (14 March 2022 swing low area, 200-day MA & the lower boundary of ascending channel from 21 September 2020 low).
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