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.
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