The Final Level of Support for Apple

Apple has been taking a beating lately with traders pushing it into a bear market (down >20%). Some are calling the drop due to supply chain issues and others think investors are selling to prepare for higher capital tax rates next year.

There is one last level of support that I can see for $AAPL that has yet to be broken. We have to go back to 1997 to find it, but it’s the Fibonacci 23.6% retracement level of $539.

Below is the chart of Apple on a daily basis with the retracement ratio lines in red.

Few things can drive a security lower than panic and that appears to be what we are seeing in Apple. It’ll be interesting to see how this level of support holds up in the coming days… time will tell if it can hold.

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything written and/or displayed here is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. My employer does in fact have a position in the above mentioned security within certain investment models and client accounts. The above mentioned security can/will be traded at anytime on our clients behalf without notice on this blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+.

About Andrew Thrasher, CMT

Andrew Thrasher, CMT is a Portfolio Manager for Financial Enhancement Group, LLC, an asset management firm in Central Indiana and founder of Thrasher Analytics, an independent financial market research firm. He specializes in technical analysis as well as macro economic developments.