Quick Note on Apple Inc. - $AAPL
Understanding Foldback Patterns in Stock Prices - an example
Ever ridden a rollercoaster? Think about a ride that starts by going up, peaks, and then comes down. Now imagine the same ride but in reverse. That's what a foldback pattern in stock prices looks like. The up-and-down pattern repeats but in reverse.
Currently observing AAPL. It appears to be folding back to its high from August 2022. Question is: will it reverse and drag the US Indices downward?
AAPL has seen 100 trading days of advance, and a price level of $180 might be a psychological moment for investors to take profits. Could we see a 38.2% retracement like the move in June last year?
Foldbacks require practice and expertise. Tools like 'bar pattern' in TradingView can assist with this. Start at an all-time high or low, and it can show how past price action might be mirrored in the future. But remember, not all price movements will follow foldbacks perfectly.
Keep in mind, foldbacks can cease to function at some point. As per Hurst analysis, a break through the 40-day FLD for AAPL would be bearish. Always do your own research before making any trading decisions.
Disclaimer: This analysis is for informational & educational purposes only. Past performance, based on hypothetical or simulated cycles, is not indicative of future results due to inherent limitations. Trading futures, options, and stocks involves high risk. Fiorente2 Newsletter doesn't provide trade advice. See our full disclaimer.
Disclosure: No positions at the time of writing.