In 2017 and through the first half of 2018, Apple (AAPL) shares found support and resistance in areas that, after the October 2018 high was established, turned out to be future Fibonacci retracement levels. These levels on the weekly chart are measured off the 2016 low and the 2018 high range.
In the months that have followed the October top in the stock price, those levels have continued to act as temporary support and resistance.
After making its December 2018 low, Apple’s stock price found support at the 62% retracement level of the range, and then began consolidating below the 50% retracement level.
Last week’s earnings pop took shares up and through $159 and the 50% retracement level. Further gains this week have the stock approaching the 38% retracement at the $176 level. This is where it would be expected to find some resistance, for two reasons.
First, the $176 level did act as multiple month resistance in early 2018. Additionally, $176 is now established as a Fibonacci retracement level, and should temporarily impede upside progress, as the 50% level did earlier this year.
A second but related technical negative are the red vertical lines on the chart. These are Fibonacci time zone lines, measured at Fibonacci time intervals starting at the 2016 low. In the recent past when one of these time cycles was reached it signaled a temporary top in the share price.
Apple is now at an intersection in Fibonacci time and price which should limit upside over the short term or initiate a small pullback.