The Key Fibonacci Confluence Area to Watch in Apple AAPL Now

There’s a key support confluence price level to watch now in Apple (AAPL) on the short-term frame.

Let’s take a look at this reference level and plan contingencies for whether this key level holds (as is the case this morning) or else fails.

For now, the focal point is the $536 level which has developed as a pure price inflection (resistance from October and support from December) along with a key short-term Fibonacci Confluence Cluster.

The chart above is a 30-min intraday ‘structure’ planning chart with three basic Fibonacci Retracement Grids overlaid from the three annotated price swing lows.

From the grid, we we see three similar cluster price levels that are available for future trade planning IF – and only if – we see shares break firmly under the $535 level.

The second support cluster target aligns with the $525 per share level, and if this cluster fails, it opens a pathway toward the $510/$515 price and Fibonacci cluster.

Those are downside targets IF support fails – instead, let’s zoom the perspective closer for a “support bounce” scenario which triggered this morning:

The 15-min Apple (AAPL) chart reveals the same Fibonacci Cluster targets ($536 and $525) but we’ll make note of the initial gap-down into support rally (bear trap) into the $535 “make or break” target.

Note the similar “arc trendline” and support thrust (impulse) up off this level from mid-December 2013 – we’re simply monitoring price action for additional upside action, particularly on a similar breakthrough of the falling ‘arc’ trendline as drawn.

If so, upside targets extend to $550 (Fibonacci and Price), $560, and back to the $573 level which would complete a short-term “rectangle” or sideways consolidation price pattern.

While considering your own analysis with your own trading strategies, be sure to incorporate these “hidden” (or possibly overlooked) cluster levels for decision support/confirmation.

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning parameters as we watch a “hold and bounce” or “break and retrace” scenario play out in the near future.

Corey Rosenbloom, CMT
Afraid to Trade.com

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