VSheart of the week – Apple

Apple could rally to a new all-time high

Medium Term Technical Analysis

Source: CMC Markets

• Apple (AAPL) stock price managed to recover more than 3 quarters (76.4% retracement) of its earlier loss of -18% from its current all-time high of 182.88 printed on January 4 2022 to the March 14, 2022 low at 150.11. Furthermore, it has also re-entered above its 50-day moving average.
• Therefore, the recent -18% 10-week decline seen in the AAPL from its all-time high on January 4, 2022 has not damaged its current major uptrend phase in place since the low on March 23, 2020. The elements now point to a resurgence of another potential impulsive up-move sequence; more than one last residual move of “hope and irrationality” to end the 13-year long-term secular uptrend phase from the March 2009 low based on Elliot Wave/fractal analysis in an impending stagflation environment coupled with global liquidity conditions tightening.
• If key medium term pivot support at 166.55 holds (50-day MA, pullback from former falling resistance from the 4th Jan 2022 high and the 50% Fibonacci retracement of the recent rally from the 14th March 2022 low to the 30th March 2022 high), APPL could see a further push higher to retest the current all-time high at 182.88 ahead of a potential further push higher towards the next resistance zone at 194.45/199.70 (upper boundary of the ascending channel from the September 21, 2020 low and a group of Fibonacci extension levels).
• On the other hand, a breakout with a daily close below 166.55 negates the bullish tone to see another set of corrective declines to retest the 153.20/146.40 support (March 14, 2022 swing low zone, 200-day MA and the lower boundary of the ascending channel from the September 21, 2020 low).