Apple AAPL Value Areas, Fibonacci, and Profile Target Chart for October

Oct 24, 2013: 1:54 PM CST

Let’s take a quick look at Apple (AAPL) as it breaks free of a lower “Value Area” and moves toward the current price pocket and then note the upside breakout targets should price continue its upside movement.

Apple AAPL Market Profile Value Area Price Projection Daily Chart Commander Indicator

This is a new style of chart so I’ll take a moment to explain some of the details.

The indicators are a mix of the new Commander Series tools from Trigger Charts (mainly the Radar Indicator which mimics traditional Market Profile charts), available at the TradeStation Strategy Network.

The same logic of Market Profile (Value Areas, breakouts, excess) applies to the colorful Radar Indicator.

We’re mainly interested in “Value Areas” or levels where price has traded an extended period of time in a consolidation or “back-and-fill” region.

The indicator highlights these as yellow lines along with red “pockets” and I’ve further highlighted these regions with white ovals.

The blue areas on the indicator highlight “cold pockets” where price spent little time and volume trading (and thus should be seen as an “Open Air Pocket” through which price can impulse quickly).

With that in mind, we note the lengthy six-month value area into the $440 per share level and the subsequent breakout in July/August which took price up to the 38.2% Fibonacci Retracement just beneath the January “Value Area” into $521.

After the summer breakout, two new “Value Areas” developed near $500 ($490 and $500) which is where price recently ejected (broke out) in October.

The key focal point for the current upside break through the “Blue/Cold Air Pocket” area is the confluence of the 50% Fibonacci Retracement ($544) with the yellow Value Area from November 2012 circled near the $545 per share area.

That’s the immediate potential price play (target), but if we step further into the future (meaning, we look further back on the chart), we see a large blue “pocket” between $540 and $640 per share.

In between this area is the 61.8% Fibonacci Retracement as drawn into $583 per share.

On a longer term basis, it may be the case that Apple shares return to prior “Value Areas” including the $640 pocket or the more important (more time and volume) area into $675 per share.

Take a moment to study the chart, prior “Value Areas” based on time, price, and volume, and overlay current activity with the Fibonacci target grid as drawn.  This is a larger picture perspective through which to develop shorter-term trading strategies.

I’ll also be guest-hosting a webinar with Andrew Horowitz of Trigger Charts to discuss trading strategies as part of an ongoing webinar series beginning Thursday November 7th, 2013.  Register now for free and join us live!  I’ll be incorporating classic trading tactics while Andrew describes the new indicators available to you.

Corey Rosenbloom, CMT
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Corey’s book The Complete Trading Course (Wiley Finance) is available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


3 Responses to “Apple AAPL Value Areas, Fibonacci, and Profile Target Chart for October”

  1. Apple AAPL by Volume Level Charting into November | Afraid to Blog Says:

    […] However, a breakthrough above $540 would continue the pro-trend or breakout event in motion toward higher timeframe targets shown in our prior Apple (AAPL) update. […]

  2. Apple AAPL Triggers Bull Flag with Fibonacci Update | Afraid to Blog Says:

    […] Apple (AAPL) Value Areas and Fibonacci Projection Levels (target achieved today) […]

  3. Flag and Trend Structure Update for Apple AAPL | Afraid to Blog Says:

    […] Apple (AAPL) Value Areas and Fibonacci Projection Levels (target achieved today) […]